Glossary · UK
What is Tax-Free Childcare?
UK government scheme: 20% top-up on childcare costs, max £2,000/year per child.
Full Definition
Tax-Free Childcare is the UK government scheme that adds 20% to your childcare savings. For every £8 you deposit, the government adds £2, up to £2,000/year per child under 12 (or £4,000 if disabled). Available to working parents earning £167-£100,000 per parent. Replaces old «childcare vouchers» (closed to new joiners in 2018). Cannot be combined with Universal Credit childcare element. Open an account at gov.uk/get-tax-free-childcare. Pay registered childcare providers from the account (£10 in account = £12.50 paid to nursery).
Related Calculators
See Also
Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.