What is Tax-Free Childcare?
Tax-Free Childcare is a new government scheme that will be available to around two million working households to help with their childcare costs.
From April, working parents with children under 12 (under 17 for disabled children) can set up an online childcare account to pay their childcare providers directly. For every £8 parents pay in, the government will add £2, up to a maximum contribution of £2,000 per child, per year (£4,000 per year for disabled children).
To qualify, parents must be in work and each earning at least £115 a week and not more than £100,000 each per year and nannies must be registered with Ofsted.
The importance of nannies and other childcare providers
Nannies and other childcare providers have a pivotal role in Tax-Free Childcare - if they don't sign up, parents won't be able to use Tax-Free Childcare to pay them. BUT they must be registered with Ofsted in order to be able to sign up for Tax-Free Childcare.
The government wrote to all registered childcare providers in September and October, asking them to sign up to Tax-Free Childcare. Going forward, all nannies registering with Ofsted will receive a letter inviting them to sign up.
For more information on Tax-Free Childcare go to www.gov.uk/government/news/tax-free-childcare-top-things-childcare-providers-should-know or download our factsheets:
>> Nanny tax-free childcare factsheet
>> Employer tax-free childcare factsheet
>> Agency tax-free childcare factsheet
Nannytax and Tax-Free Childcare
Read our Top Five Questions on Tax-Free Childcare