Tax-free childcare

Tax-free children is an option for parents with children at Little Ladybirds Day Nursery.

If you’re a working parent with children under 12 (or under 17 for disabled children), you can open an online account to pay for registered childcare. The government will top-up the money you pay into the account. For every £8 you pay in, the government will add an extra £2. You can receive up to £2,000 per child – that’s up to £500 every three months. If you have a disabled child, you can receive up to £4,000 per child – that’s up to £1,000 every three months.

You’re usually eligible if all of the following apply:

Your child:

  • is under 12, or 17 if they’re registered as having a disability
  • usually lives with you

You (and your partner, if you have one):

  • are 16 or over
  • live or work in the UK
  • are employed or self-employed
  • are over 21 and earn on average at least £120 a week, unless in your first year of self-employment.

Different rates apply if you’re under 21 or an apprentice

  • earn less than £100,000 a year each
  • don’t get other support with your childcare, including from a childcare voucher or salary sacrifice scheme

You may also be eligible if you have a partner and one of you gets any of the following benefits:

  • Carers Allowance
  • Employment and Support Allowance
  • Incapacity Benefit
  • Severe Disablement Benefit

To apply for tax-free childcare please visit the Child Care Choices website.

For further information please contact us.