With Tax-Free Childcare you open an online childcare account and pay money in. For every £8 you pay in, the government adds £2, up to £500 every 3 months (£2,000 a year) for each child, or £1,000 every 3 months (£4,000 a year) if your child is disabled.
Who can get it
- Children aged up to 11, or up to 16 if they’re disabled.
- Working parents with broadly the same earnings rules as the 30 funded hours (at least the equivalent of 16 hours a week at the minimum wage each, and under £100,000 adjusted net income each).
- You can’t use it at the same time as Universal Credit childcare costs or childcare vouchers.
Using it at a nursery
The nursery must be signed up to receive Tax-Free Childcare payments; most are. You can use it alongside funded hours, to pay for the hours and extras that aren’t funded. Reconfirm your details every 3 months to keep the top-ups coming.
Sources
This guide is general information, not advice. Rules can change, so always check gov.uk.