Tax-Free Childcare - a new Government scheme to help working families with their childcare costs.
It is an online savings account called a 'Childcare Saver Account' which contributes to the costs of registered childcare. For those older/school age children, this may include breakfast and after school clubs, holiday schemes and childminders, also known as 'wraparound childcare'. Parents can apply for both TFC and '30hrs Free Childcare' at the same time at: www.childcarechoices.gov.uk.
- For every £8 parents pay in to the account, the Government will add £2
- The total amount in the account can only be spent on childcare
- Parents can receive up to £2,000 in Government support per child, per year, or £4,000 for disabled children
- The top up will be added into the account on the same day, and the total amount will be available to pay for childcare.
- Parents will be able to track how much they've paid in and how much they've spent for each child
- Each child will have a unique reference number.
TFC helps working families of children aged 0-12 years (up to 17 years if your child has a disability) to pay for childcare. Parents may be eligible if they work more than 16 hrs/wk and:
- Earn at least £120 per week but less than £100,000 per year
- Don't receive childcare vouchers, tax credits or Universal Credit
- Reconfirm eligibility every 3 months.
Parents can not use TFC at the same time as Childcare Vouchers, Universal Credit or Tax Credits. If you are in receipt of Tax Credits you can choose not to apply for TFC and retain your Tax Credits.
Visit the HMRC 'Apply for Tax-Free Childcare' pages