Tax-free Childcare: What you need to know

Tax-free Childcare will give parents a government top-up of 20% on their childcare spend, up to the value of £2,000 per child per year, based on childcare costs of a maximum of £10,000. Parents of disabled children will benefit from £4,000 per child per year, based on childcare costs of a maximum of £20,000 per child per year.

The eligibility requirements for vouchers and Tax-free Childcare are different – you can't claim Tax-free Childcare unless all parents in a household are working or if you are in receipt of tax credits. Vouchers can be used for children up to 1st September following their fifteenth birthday, but Tax-free Childcare is only be available for children up to 1st September following their 11th birthday, or 16th birthday if they are disabled.

As of 4th October 2018, the Childcare Voucher Scheme closed to new entrants.  This means that if employees are not already benefiting from Childcare Vouchers, they can no longer join the scheme.  If employees are currently receiving Childcare Vouchers they can continue in the scheme for as long as they remain eligible.