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Thousands Miss Out On Tax Free Childcare

Are you eligible?


Posted by Helen Beaumont on 15/02/2023 @ 8:00AM

The Government is offering up to £2,000 per year per child towards tax free childcare costs including nurseries, childminders and other wraparound care. While 1.3 million families are eligible for the Tax-Free Childcare scheme, over 800,000 are not using it ...

You can use the Tax Free Childcare scheme for all sorts of childcare!

You can use the Tax Free Childcare scheme for all sorts of childcare!

copyright: charles mcarthur / pixabay

With up to £2,000 per child per year, you can use the scheme to pay for up to £10,000 of childcare each year. You open a Tax-Free Childcare account using your Government Gateway ID and for every 80p you pay in, the Government will top up your account. Look at your childcare bill and multiply it by 0.8. This gives you 80% of the total bill.

Any worker can get Tax-Free Childcare, including the self-employed. If you're single, you qualify for it on your own as long as you're in work. If you're in a relationship, you usually both have to be in work to qualify.

There are some circumstances where you're eligible, even if you are not working:

  • You're on sick leave

  • You're on annual leave

  • You're on shared parental, maternity, paternity or adoption leave, and already have a Tax-Free Childcare account for another child

  • You or your partner is in work and the other isn't able to work and receives certain benefits such as incapacity benefit, carer's allowance or severe disability allowance

  • Your child must be 11 or younger (or 16 if your child has a disability)

The scheme's available to parents of children until the September after their children turn 11 (or until they turn 16 if your child is disabled) and you need to earn at least national minimum wage, but less than £100,000 a year.

You can use it for all sorts of childcare, including breakfast and after-school clubs although the provider must be registered with both the scheme and a regulator.

Government top-ups normally appear on the same day.

Until next time ...



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About Helen Beaumont ...


Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.