Tax-Free Childcare

The new scheme was launched on 28 April 2017, but not for all parents. If you have children aged under 2 you should have received a letter from HMRC inviting you to register. Other parents will have to wait. Once registered you can open a special on-line account which you or others can save money to which the government will add a further 25% up to a maximum of £2,000 per annum per child aged eleven or under or £4,000 for disabled children until they reach 17.

The money can be used to pay child minders, nurseries, nannies and after-school clubs but only if they are registered for Tax-Free Childcare or are homecare workers who work for a registered homecare agency.

To qualify, parents must both be working and each earning at least £120 a week (on average) and not more than £100,000 each a year.