You have to pay £500 for 3 months and yearly £2,000 for hiring childcare for every child. But for disabled children, it goes to £1,000 for 3 months and yearly £4,000.
Make sure, you must have registered yourself on the portal. Moreover, if you have registered to the portal, then log in.
First, you have to set up your account on the online childcare portal to have tax free childcare. The government will add £2 to this account for every £8 you deposit.
Meanwhile, you have to be eligible for hiring Tax free childcare for almost 30 hours.
Table of Contents
Why should you use tax-free childcare?
You can hire the best childcare from here for different purposes as:
But the person whom you appointed as childcare must have registered on the portal so that you can take advantage of Tax free Childcare. So, always verify before hiring.
- Want childcare to work for an extra time then use extra money from Tax free childcare.
- Use extra tax free childcare money to have special equipment for your child and give it to the childcare provider.
- Take help and consult which equipment is best for your child.
Childcare Provider from EEA country:
You can also use tax free childcare providers that live in the European Economic Area country (EEA). However, for verification contact HMRC (HM Revenue and Customs).
Eligibility criteria are based on:
A childcare bursary or grant, or childcare vouchers if you get tax credits or Universal Credit:
You will not have Tax free childcare at the same time when you are holding child tax credit, childcare vouchers, working tax credit, or child tax credit. While, you can choose the method according to your conditions.
You have to apply for tax free childcare and after successful application, your child or working Tax Credit will diminish. Then, you don’t have to apply for them.
Moreover, you have to inform the employer for stopping the childcare vouchers and contract with childcare directly within 90 days when you apply for Tax free childcare. So, they can stop vouchers and connect with childcare directly.
When you are going to leave the childcare voucher scheme, then you must provide HRMC evidence. For instance, provide a letter in which you mentioned contract completion and leave of childcare voucher scheme. But having a partner that collects vouchers and contracts. So, tell the employer of ending this scheme.
You have to cancel your claim on Universal Credit after getting confirmation from Tax-free childcare.
When you want to have a Childcare bursary or expect almost 3 months then you will not eligible for Tax free childcare.
If any person already uses 30 hours of tax free childcare and you also apply for some time, then their 30 hours stop for next time. Now, you will be able to use these 30 hours.
If you have a partner:
If your partner is with you then must mention it in the application:
And their income will not have any effect on eligibility criteria but if any effect:
If you are separated:
Both of you have to decide who takes the responsibility for the child or both are responsible.
But if are not able to decide then apply separately. Meanwhile, HRMC decides who can get a childcare account.
Tax Free Childcare login:
This account helps you in getting childcare for 30 hours or pay to have tax free childcare.
For having childcare for 30 hours you must have to log in to your childcare account in 3 months and update the current circumstances.
By fulfilling all the formalities, you need to log in to your account and get a code that has to send to the childcare provider.
However, if you are logging in for Tax free childcare, then:
For applying for Tax free childcare then you need a government gateway password and user ID.
Log in to your childcare provider account for Tax Free Childcare
You have to log in if you work as a childcare provider for getting payments from parents.
Log in to your account:
If you work as a childcare provider and are already registered for Tax free childcare. Then, log in and use your own account. For logging in you need an 11-digit username (user ID) and password.
Log in NOW:
Receiving payments from parents:
Parents can send you payments by using your childcare provider account details that include:
If you use a regulator to secure your details, then parents will reach through your postcode and regulator reference.
You can get the confirmation notification of receiving payments from parents in your account in 3 working days.
Matching payments to a child:
Every payment has some specific child reference in your bank statement that involves if:
4 Letters: The first 3 letters of the child’s surname or initial letter
5 Numbers: ‘TFC’ followed by “AJON12345TFC” you get this type of reference from parents before transferring payments.
If you want to refund payments to parents:
Managing your account:
Keeping your details up to date:
You must make your account up to date because on that childcare provider account you get payments. Inform the regulator in case of changing the email address, address, or main contact of your account. After all changings, your account gets updated automatically.
Letting someone else manage your account:
After logging in to your childcare account then set ‘delegate’ that helps you in managing your account by someone else. So, providing access to those persons you need their:
In this article, you will find how can parents approach childcare for their children. Tax Free childcare helps in connecting parents with childcare providers taking no interest as well. Childcare providers and parents have to update their accounts for having no connection loss.