Tax-free childcare accounts can be used to pay for approved childcare for children aged 11 or under, or up to 16 if your child has a disability. This includes summer childcare expenses like holiday clubs and childminders. These accounts can also be used year-round for nursery fees, breakfast and after-school clubs, and various other out-of-school activities.

How Tax-Free Childcare Accounts Work

Opening a Tax-Free Childcare account is simple and can be done any time during the year. If you haven’t signed up yet, check your eligibility and apply online today. For every £8 paid into an online account, you will receive an additional £2 from the government. This means parents and carers can receive up to £500 every 3 months (£2,000 a year for each child), or £1,000 (£4,000 a year for each child) if your child is disabled. Money can be deposited at any time to be used straight away, or whenever it is needed. Any unused money in the account can be withdrawn at any time.

Eligibility

Your family may be eligible for Tax-Free Childcare if you:

• have a child or children aged 11 or under. Children stop being eligible on 1 September after their 11th birthday. If your child has a disability, you can receive support until 1 September after their 16th birthday.
• earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average.
• each earns no more than £100,000 per annum.
• do not receive tax credits, Universal Credit or childcare vouchers.