Parents can apply for Tax-Free Childcare through an online application (External link).
Once parents have opened an account, for every £8 they pay in, the UK Government will pay in £2, up to a maximum of £2,000 per child per year (or £4,000 for disabled children). This can then be spent on regulated childcare.
Who is eligible to apply?
To be eligible, parents must be in work (including self-employment) and each earning at least £120 per week and not more than £100,000 per year.
The scheme is open to eligible families with children under 12, or under 17 if the child has a disability.
Parents can apply online using the UK Government Childcare Service (External link).
HMRC have created the Childcare Choices website (External link) which includes a link to an easy-to-use childcare calculator.
The website also includes a page for childcare providers (External link) featuring a toolkit of communications materials.
HMRC are encouraging all regulated childcare providers to sign-up for Tax-Free Childcare (External link) now so they are able to receive payments from parents through the scheme.
All regulated childcare providers in the UK have been sent an invitation to sign-up for Tax-Free Childcare.
For providers who have lost their letter or not received one, they can request a new one by calling 0300 123 4097.