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Can parents pay you using Tax-Free Childcare?

01 Nov 2019

Parents can use Tax-Free Childcare to pay for:

  • pre-schools, day nurseries and out-of-school care
  • registered childminders
  • school based care (that is paid for, such as after-school and holiday clubs)

When parents apply for Tax-Free Childcare they set up an online childcare account. For every £8 you pay into the account, the government will add £2, or £4 for children with a disability. The government will pay up to £2,000 per child per year, or £4,000 per year for children with a disability.

They use this account to pay their childcare provider. If parents make a payment to their provider before 2:30pm it will reach the provider's account the same day, after this time or at weekends it will be the next working day. 

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