Tax-Free Childcare Guidance for Childcare Providers

Childcare providers are advised by HM Revenue & Customs to make sure they’re ready for tax-free childcare

Tax-Free Childcare is a new government scheme to help working parents with the cost of childcare.

Parents will be able to open an online account, which they can use to pay for childcare from a registered provider. For every £8 a parent pays in, the government will pay in extra £2.

Tax-Free Childcare will be launched from early 2017.

Sign up to receive payments
Childcare providers need to sign up to receive payments from parents.

In September and October 2016, HMRC will send letters to regulated and approved childcare providers across the UK, asking them to sign up online for Tax-Free Childcare.

You will be able to sign up online as soon as you receive your invitation.

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

Registration can take up to 12 weeks so, if you aren’t registered, you should register now so that your customers can pay you using Tax-Free Childcare.

Read further guidance on Tax-Free Childcare for childcare providers.