Tax-Free Childcare - frequently asked questions

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Are parents able to use Tax-Free Childcare in addition to workplace salary sacrifice schemes, such as childcare vouchers?

No. You can’t use Tax-Free Childcare and workplace salary sacrifice schemes, such as childcare vouchers, together. If a parent is successful in applying for Tax-Free Childcare, they will have to leave their childcare voucher scheme within 3 months. 
Tax-Free Childcare is replacing workplace salary sacrifice schemes, which closed to new entrants in October 2018, as it is provides access to childcare support costs to more working families.

What can Tax-Free Childcare be used for; does it include lunches, music lessons etc?

Families can use Tax-Free Childcare to pay for any approved childcare, including holiday clubs, breakfast and after school clubs, child minders and nurseries. It can also be used for nursery deposits, retainers (for holiday periods), childcare payments in advance and extras, such as lunches or trips, if/when these are included as part of the overall childcare costs charged by the childcare provider.
Tax-Free Childcare can’t be used for any part a child’s compulsory education costs. This includes:

  • school lunches
  • private lessons during school time, such as private music lessons
  • school uniform
  • school lunches
  • costs for school trips within the normal school day

Can I use Tax-Free Childcare if the childcare is provided by a family member?

Tax-free Childcare can be used for childcare with a relative (for example, a grandparent), providing they’re a registered childcare provider and care for your child outside your home. You cannot get help for childcare provided by your partner.

Will using Tax-Free Childcare affect my Child Benefit?

No, using Tax-Free Childcare has no effect on claiming Child Benefit. Child Benefit is paid to a parent, if eligible, to help them raise a child they are responsible for. Tax-Free Childcare contributes towards working parents’ childcare costs.

A parent cannot claim Tax-Free Childcare at the same time as Working Tax Credit, Child Tax Credit, Childcare Vouchers or Universal Credit.

Can parents of a disabled child claim Tax Free Childcare alongside disability allowances?

Parents can claim Tax-Free Childcare if their child is in receipt of any of the following:

Is there a maximum amount that parents can put in the Tax-Free Childcare account?

There is no limit on the amount a parents can deposit into the account, but the maximum government contributions they will receive every 3 months is £500 for each child, or £1000 if their child is disabled. Once a parent has reached the maximum contribution, they will need to wait until they enter their next eligibility period before they can get further government contributions.

Is Tax-Free Childcare available when I'm on parental or adoption leave?

Yes. You can get Tax-Free Childcare if you (and your partner, if you have one) are on shared parental, maternity, paternity, or adoption leave, and:

  • are due back to work within 31 days of the date you first applied, and
  • will expect to earn on average at least the equivalent to 16 hours a week at the National Minimum or Living Wage but no more than an adjusted net income of £100k a year when you return.

If you are on parental or adoption leave but applying for a child other than the one you are on leave for then you do not have to wait until 31 days before and can apply straight away - as long as you were in qualifying paid work immediately before the leave period started.

Can a parent get back dated Tax-Free Childcare if they were eligible and didn't know?

Where parents lose out on Tax-Free Childcare through no fault of their own, they might get a top- up refund or compensation. Guidance on the compensation route can be found on GOV.UK.

Is there a minimum amount I must pay for childcare per week or month to use Tax- Free Childcare?

There is no minimum amount that you need to deposit into your Tax-Free Childcare account. For every £8 you pay into your account, the government adds an extra £2.

You can get up to £500 every 3 months (up to £2,000 a year) for each of your children to help with the costs of childcare. This goes up to £1,000 every 3 months if your child is disabled (up to £4,000 a year).

Any money in your account will remain for you to pay your childcare provider when required. If you withdraw funds, the government will take back it’s £2 ‘top up’ for every £8 withdrawn.

Will I be reminded to reconfirm my details?

Yes, you will receive a reminder:

  • the first email reminder is sent 4 weeks before reconfirmation is due. 
  • a further reminder is sent 2 weeks before reconfirmation is due.
  • a notification is sent on the deadline date of reconfirmation to notify you that your Tax-Free Childcare top-up payments have stopped

This message will come from GOV.UK. Please remember to make sure that your details are up to date.

I can see my childcare provider’s details but unable to add them to my Tax-Free Childcare account, what can I do?

Your childcare provider must be signed up to Tax-Free Childcare before you can pay them and benefit from this scheme. You can send them a nudge notification asking them to sign-up for the scheme via your online account. Alternatively, you can contact them directly to check if they are signed-up.