C F W Accountants LLP

Are you or your employees making good use of Tax-Free Childcare?

Talk to an expert

Tax-Free Childcare is available to working families to help them save on their childcare costs. However, many may not be making use of this provision and with the Easter break soon upon us, HM Revenue & Customs (HMRC) is encouraging families who have not yet signed up to consider doing so.

Tax-Free Childcare can be worth up to £2,000 annually per child, or £4,000 if the child is disabled. It can be used to help pay for approved childcare for children aged 11 and under, or 16 and under if they have a disability.

The way it works is that the parents first apply for a childcare account. Once the account is opened, the parents can deposit money that will be used to pay for childcare. Where eligible, for every £8 paid into the account, the government will pay in £2 to use to pay the childcare provider.

To be eligible for Tax-Free Childcare a family has to:

  • Have a child aged 11 or under, or 16 and under if they have a disability.
  • Be earning at least the National Minimum Wage for 16 hours a week, on average.
  • Each earn no more than £100,000 a year.
  • Not be receiving tax credits, Universal Credit or childcare.
    Employed, self-employed, and directors can all apply, and HMRC set out what details parents need to provide to confirm eligibility.
    From April 2024, there is also the possibility for eligible working parents to access 15 hours free childcare for 38 weeks a year that can be used flexibly with one or more providers.
    This scheme will be further expanded in September 2024 and again in September 2024 so that ultimately 30 free hours of childcare could be available for working parents with children between nine months old and school age.
    To apply for Tax-Free Childcare, please see: 
    To register for childcare support, please see:
July 22, 2024
Highlights from the King’s speech: What impact may they have on your business?

Last week King Charles delivered the King’s Speech. This is a speech traditionally delivered at the State Opening of Parliament and it sets out the government’s plans and priorities for the coming year.

Read article
July 18, 2024
The new government’s six first steps for change: Implications for your business

The new government has rolled out an ambitious plan to drive significant changes across the UK, and as your business advisors, we want to break down how these could impact you.

Read article