E1.715 Tax-free childcare—overview
Tax-free childcare is a government scheme under which eligible persons pay money into a designated account with National Savings & Investments in respect of an eligible child. HMRC then makes top up payments into the account to help with the costs of childcare.
A separate account is required for each child, though these can be managed via the same online portal. More than one individual can pay into each child's account. Those who are digitally excluded may apply via the Childcare Service helpline1.
Top up payments are available up to a maximum of £2,000 per child per year (£4,000 for a disabled child). This is equivalent to basic rate tax relief on the maximum qualifying contributions. Higher rate relief is not available. Households where an individual has adjusted net income2
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