Are You Eligible for Tax Free Childcare?

by Steve Maggs, Tax Partner

For more information on how RRL can help with Tax-Free Childcare, please contact Tax Partner Steve Maggs, on 01872 276116 / 01736 339322 or

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Tax-Free Childcare is a government scheme that helps working parents, including the self-employed and company employees, with childcare costs.

If eligible, you could get up to £2,000 per child, per year to spend on qualifying childcare. If you claim Tax-Free Childcare, the government will pay £2 for every £8 you pay your childcare provider via an online account.

Parents are usually eligible if they (and their partner, if they have one) are:

  • in work, or getting parental leave, sick leave or annual leave
  • each earning at least the National Minimum Wage for 16 hours a week, which equates to £125.28 if they are 25 or over.

If you are self-employed and started your business less than 12 months ago, this earnings limit will not apply. If your self-employed income varies over time, you can average your profits out across the tax year to meet the minimum income requirement.

You aren’t eligible if:

  • your child does not usually live with you
  • the child is your foster child
  • either you or your partner has a taxable income over £100,000
  • you’re from outside the EEA and your UK residence card says you cannot access public funds

Full details and more information on Tax-Free Childcare is available on the government’s website here:


This publication has been prepared by Robinson Reed Layton LLP. It is to be treated as a general guide only and is not intended to be a comprehensive statement of the law or represent specific tax advice. No liability is accepted for the opinions it contains, or for any errors or omissions. All rights reserved.