tax free childcare

Tax-Free Childcare

The government has introduced a tax incentive for childcare.

Overview

Under TFC the tax relief available is 20% of the costs of childcare up to a total of childcare costs of £10,000 per child per year. The scheme will therefore be worth a maximum of £2,000 per child (£4,000 for a disabled child). Parents are able to apply for TFC for children under 12 (up to 17 for children with disabilities).

youtube-video-thumbnail

Do you have a question?

We're happy to assist and help answer your questions, please speak to an accountant on Norwich 01603 931177 or request a call back.

To qualify for Tax-Free Childcare all parents in the household must generally meet a minimum income level, based on working 16 hours a week (on average £120 a week) and each earn less than £100,000 a year and not already be receiving support through Tax Credits or Universal Credit.

Online account

Parents are able to register with the government and open an online account. The government will then 'top up' payments into this account at a rate of 20p for every 80p that families pay in.

Self-employed

Self-employed parents are able to get support with childcare costs using the TFC scheme, unlike employer supported childcare scheme. To support newly self-employed parents, the government have introduced a 'start-up' period. During this period a newly self-employed parent will not have to earn the minimum income level.

Roll out of TFC and service issues

In April 2017, HMRC started rolling out the childcare service via a single website through which parents can apply for both 30 hours free childcare and TFC. All parents of eligible children are now able to apply for TFC. Parents can apply online through the childcare service which can be accessed via the Childcare Choices website.

HMRC acknowledge that over the summer some parents did not receive the intended level of service when using the website and that they have subsequently made significant improvements. For those parents who have had difficulties in accessing the service, compensation may be available: see childcare service compensation.

Childcare providers

Only childcare providers registered with a regulator can receive Tax-Free Childcare payments.

How does this relate to employer supported childcare?

The existing scheme, ESC, will remain open to new entrants until at least September 2018 to support the transition between the schemes. ESC continues to be available for current members if they wish to remain in it or they can switch to the new scheme but parents cannot be in both ESC and TFC at the same time.

How we can help

If you would like to discuss childcare in further detail, please do not hesitate to contact us.

☆ ☆ ☆ ☆ ☆

Excellent Service
I'm very pleased with the input I received from Accountants etc. Would highly recommend.
A. Claxton

☆ ☆ ☆ ☆ ☆

Great Price - Very Efficient
Accountants etc. are very efficient and provide us a very good quality of service at a great price.
J. Kemp

☆ ☆ ☆ ☆ ☆

Easy to Contact
The team have always been easy to get hold of and happy to help with any queries.
M. Azodoh

☆ ☆ ☆ ☆ ☆

Understand my Business
They really understand my business and the team has been very helpful. Great service!
T. Donaldson

LOW COST ACCOUNTANTS & TAX ADVISERS

Get an instant online quote today & see how much you can save!

GET IN TOUCH

We offer low-cost fixed fee pricing which enables you to know exactly how much you're paying. Book a free consultation today!
Call Norwich 01603 931177
Send a Message
Get a Quote

QUICK LINKS

Find the information you need
Home
Our Services
Who we Help
Resources
Fees
Contact

FOLLOW US

PARTNERS

xero receipt bank logo