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The new government initiative, Tax-Free Childcare, was introduced earlier in 2017 and is now in full operation. The scheme has been set up to support working parents who pay for childcare.

How the scheme works
If you are eligible, it offers to cover 20% of childcare costs [limited to a maximum of £10,000 in childcare costs, per child, per year] for children under 12 (or under 17 if they have a registered disability). Parents open a new childcare account online and for every £8 you or someone else pays in, the government will top up an extra £2. Parents can only pay for childcare from their childcare account if the childcare provider is signed up for Tax-Free Childcare.

Who is eligible?
To qualify, parents must be working and each earning at least £120 per week and not more than £100,000 each per year. 

Can I use Tax-Free Childcare and Childcare Vouchers or the Workplace Nurseries' Salary Exchange Scheme?
No, you cannot use Tax-Free Childcare if you are in the Childcare Vouchers or Workplace Nurseries' Salary Exchange scheme so you need to consider which scheme would bring you the greatest benefit. For further information, please call the government's Childcare Services Helpline on 0300 123 4097.

How to apply
You apply for Tax-Free Childcare online through the government website: