Tax Free Childcare is an online payment account that we have signed up to which parents use solely to pay their childcare costs. For every £8 that families pay in, the Government will make a top-up payment of £2, up to a maximum of £2,000 per child per year (or £4,000 for disabled children).
Tax-Free Childcare will be available for children under 12 years old (under 17 years old for disabled children) and can be used to contribute towards nursery, childminder and after-school care. To be eligible, parents must be in work (including self-employment) and each earning at least £120 per week and not more than £100,000 per year. The offer will be introduced to parents with the youngest children first and gradually rolled out so that all parents will be able to apply by the end of 2017.
Parents need to register with the “Keep me updated” tool.