Tax-Free Childcare
Tax-Free Childcare (TFC) is a government scheme to help working families and the self-employed with childcare costs.
If you are eligible, you can apply to have an online childcare account. This account helps you to pay your childcare provider. Where the government will add funds to help towards the cost of childcare.
For every £8 you pay in, they will pay in an extra £2. You can get up to £2,000 per child, per year, towards your childcare costs. Or £4,000 for a child with a disability.
Since 2018, TFC has replaced childcare vouchers.
Eligibility
You can get TFC if you:
- earn under £100k and at least £152 per week (equal to 16 hours at the national minimum or living wage each week)
- do not receive Tax Credits, Universal Credit or childcare vouchers
- have a child aged 0 to 11-years-old (or 0 to 16 if disabled).
Your child can receive TFC until the September after they turn 11. Or their 17th birthday if they are disabled.
You can claim for multiple children. Each child will have their own TFC reference number.
If you apply for TFC and already get Tax Credits or Universal Credit, the government will stop your payments. Check if you're better off claiming TFC by using their Tax Credit Calculator.
Read the step-by-step checklist for parents and carers.
How to use Tax-Free Childcare
You can use TFC to pay for registered:
- childminders, nurseries, and nannies
- breakfast clubs, after-school clubs, and holiday play schemes
- home care workers.
You can't use TFC to pay friends or family for childcare.
You can claim TFC if you use 15 or 30 free hours childcare. You can use TFC to cover extra childcare costs you may have.
Your childcare provider must be signed up to the scheme before you can pay them and benefit from TFC. Check with your provider if they are registered.
Tax-Free Childcare advice for childcare providers.
Apply for Tax-Free Childcare
Before you start your application, you will need:
- a form of ID such as a passport, or a P60
- your National Insurance Number
- your partner's National Insurance Number (if you have one).
Applications should take no longer than 20 minutes.
How to pay your childcare provider
Once your account is ready and has money in it, you can pay like you would with online banking.
Use a unique reference number for each child. This helps your provider identify your payments. Don't forget to let them know the reference number.
Your online account also allows you to pay for some or all the fees.
If you want to take money out or stop paying into your account, the government will stop its contribution.
Reconfirmation
Remember you'll need to reconfirm your details every 3-months.
Support
For more information on paying for childcare visit the Best Start in Life website.
If you are a provider, find out how to sign up and accept Tax-Free Childcare payments.