Tax-free childcare to launch in 2017

Thursday, October 06, 2016

The government’s tax-free childcare scheme is due to launch in early 2017.
As part of the scheme, parents will be able to set up an online account with HMRC to pay for childcare with a registered provider.


The government will top up the account by 20% up to a total of £10,000. The maximum government payment is £2,000 per child per year (or £4,000 for children with disabilities).

The childcare scheme is available for children up to the age of 12, or 17 for those with disabilities.

To be eligible, each parent needs to be in work earning a minimum of £115 a week and have an annual income of less than £100,000.

Parents

Parents will be able to set up an online account and check for local 
childcare providers who are registered with the scheme.

There’s no monthly minimum or maximum payment and parents can make withdrawals if they wish.

They will be able to send payments from their tax-free childcare accounts to the provider’s bank account via BACS.

Childcare providers

Letters are being sent to regulated and approved childcare providers who will be able to register online once they have received their invitation.

Only childcare providers registered with a regulator can receive payments from the scheme. Registering with a regulator can take up to 12 weeks.

You’ll need your 10 digit unique tax reference number to sign up for an account.