Top 10 Facts About The New Scheme

From autumn 2015 Tax-Free Childcare will be available to nearly 2 million households to help with the cost of childcare, enabling more parents to go out to work, if they want to, to provide greater security for their families. Here's the top ten things to know about the scheme…

1. The scheme will launch in autumn 2015

You'll be able to open an online account, which you can pay into to cover the cost of childcare with a registered provider. This will be done through the government website, GOV.UK.

2. For every 80p you or someone else pays in, the government will top up an extra 20p

This is equivalent of the tax most people pay - 20% - which gives the scheme its name, 'tax-free'. The government will top up the account with 20% of childcare costs up to a total of £10,000 - the equivalent of up to £2,000 support per child per year.

3. The scheme will be available for children up to the age of 12

It will also be available for children with disabilities up to the age of 17, as their childcare costs can stay high throughout their teenage years.

4.To qualify, parents will have to be in work, earning just over an average of £50 a week and not more than £150,000 per year

The scheme is designed to be flexible for parents if, for example, they want to get back to work after the birth of a child or work part-time.

5.Any eligible working family can use the Tax-Free Childcare scheme - it doesn't rely on employers offering it

Tax-Free Childcare doesn't rely on employers offering the scheme, unlike the current scheme Employer-Supported Childcare. Any working family can use the Tax-Free Childcare scheme, provided they meet the scheme's eligibility requirements.

6. The scheme will also be available for parents who are self-employed

Self-employed parents will be able to get support with childcare costs in Tax-Free Childcare, unlike the current scheme (Employer-Supported Childcare) which is not available to self-employed parents. To support newly self-employed parents, the government is introducing a 'start-up' period. During this, self-employed parents won't have to earn the minimum income level, £50 a week.

The scheme will also be available to parents on paid sick leave and paid and unpaid statutory maternity, paternity and adoption leave.

7. If you currently receive Employer-Supported Childcare then you can continue to do so

You do not have to switch to Tax-Free Childcare if you do not wish to. Employer-Supported Childcare will continue to run. Parents won't be able to register for Employer-Supported Childcare after Tax-Free Childcare is introduced in autumn 2015, but those already registered by this date will be able to continue using it for as long as their employer offers it. However, Tax-Free Childcare will be open to more than twice as many parents as Employer-Supported Childcare.

Employers' workplace nurseries won't be affected by the introduction of Tax-Free Childcare.

8. Parents and others can pay money into their childcare account as and when they like

This gives you the flexibility to pay in more in some months, and less at other times. This means you can build up a balance in your account to use at times when you need more childcare than usual, for example, over the summer holidays.

It's also not just the parents who can pay into the account - if grandparents, other family members or employers want to pay in, then they can.

9. The process will be as simple as possible for parents

The process will be light-touch and as easy as possible for you. For example, parents won't have to report any change of circumstances to HMRC; there will be a single log-in service where parents can view accounts for all of their children at once.

10. You'll be able to withdraw money from the account if you want to

If your circumstances change or you no longer want to pay into the account, then you'll be able to withdraw the money you have built up. If you do, the government will withdraw its corresponding contribution.

More information will become available ahead of the scheme being introduced so parents making childcare decisions are able to consider all their options.

HM Treasury's infographic explains how the scheme will run.

Last year we asked parents for their views on how this scheme should be designed. If you're interested in how we formed the policy after this feedback, then you can read more on what we're doing to make Tax-Free Childcare simple, flexible and fair.

You can also access the full consultation response document online.


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Register with us online for assistance setting up your account. Our helpful and qualified advisors will set everything up for you - hassle free.

Help is on hand

Check back often, this website will have all of the latest updates as Tax-Free Childcare Accounts move forwards. A helpful advisory service will be available at all times.

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Setting up your account incorrectly could result in you getting less than your full allowance. Our advisors will ensure you get your full allowance.

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As the scheme starts to go live the rules are likely to change as policies are released governing the scheme. Stay on top by register on this site



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Want to know more? | a little about us

Tax Free Childcare Account is an advisory service that aims to help people deal with the new Tax Free Childcare Account system that will come into play in 2015.

So far the government have not released very much information about the system, and we feel that people will need a lot of help when the new system is released.

That's why we've set up this website to help people when the new system comes into play.

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