Tax-Free Childcare

A tax efficient way of helping towards the cost of childcare.

What is Tax-Free Childcare?

Tax-Free Childcare is a tax efficient way of helping towards the cost of childcare.

For every £10 you spend on childcare the Government will top up your account with £2.50 – the equivalent to the basic rate of tax (20%) and gives the scheme its name, Tax-Free Childcare.

Can I apply?

Eligibility depends upon the following:

  • If you are working
  • Your income (and your partner’s income)
  • Your child’s age and circumstances
  • Your immigration status

You can usually receive Tax-Free Childcare if you (and your partner) are working, on sick leave or annual leave or on shared parental, maternity, paternity or adoption leave (certain restrictions apply if you are on adoption leave).

You may still be eligible if your partner is working and you receive Incapacity Benefit, Severe Disablement Allowance, Carer’s Allowance or contribution based Employment and Support Allowance.

Find out more about Tax-Free Childcare in our fact sheet.

To discuss this service further please get in touch with a member of our team.

Please note that the information in this communication is for promotional use. Information correct as of May 2023.