What is Tax Free Childcare?
Tax-Free Childcare is a new scheme which is being rolled out gradually from 21 April 2017 and will offer working families 20% support towards qualifying childcare costs up to certain limits.
It will eventually replace the directly contracted childcare and childcare vouchers provided by employers under the Employer Supported Childcare Scheme.
The scheme will eventually be open to almost two million families in the UK and is administered by HM Revenue and Customs (HMRC).
You can qualify if you are employed, self-employed or both as long as you (and your partner if you have one) earn at least £120 a week if you are aged 25 or over. You will normally qualify if you are in paid work during some periods of sick leave, maternity, paternity, adoption or shared parental leave if you were earning at least £120 a week before you went on leave.
The scheme covers England, Wales, Scotland and Northern Ireland.
Reviewed: August 2017