Tax Free Childcare

Tax Free Childcare

What is a Tax-Free Childcare Scheme?

A Tax-Free Childcare Scheme is a government benefit given to those parents who need support with childcare. This scheme is given to parents to support them with costs and childcare expenses.

How much support does the Tax-Free Childcare Scheme give?

Parents who are interested in this scheme will be able to get up to £500 every 3 months, that’s up to £2,000 per year – this amount applies to one child. If your child has any disability, the scheme will go up to £1,000 every 3 months, giving a total of £4,000 per year.

Would you like to register to apply for any childcare benefits? Visit the UK government page here

You will set up an online childcare registration for your child if you get Tax-Free Child care. The government will contribute £2 for each £8 you deposit into this account, which you can use to pay your provider. Furthermore, if you use a Tax-Free child care scheme with a caregiver, then you can use the money in your Tax-Free childcare account to pay HMRC as well.

What type of childcare is eligible for Tax-Free Childcare?

It is important to bear in mind that before you apply to this scheme, the childcare provider needs to be approved by the government and signed up for the scheme.

You can check if a childcare provider is approved or search for one in:

 

You can use the Tax-Free Childcare to pay for:

  • childminders, nurseries and nannies
  • after school clubs and play schemes

Eligibility for Tax-Free Childcare

The government will consider your application to this scheme if:

  • Your child lives in the same household as you
  • You are applying to the Tax-free childcare scheme only
  • Your child’s age is 11 years old or under, and if your child has a disability, the age limit is under 17 years old
  • Your immigration status
  • You or your partner don’t have an expected ‘adjusted net income’ over £100,000 in the current tax year. This includes any bonuses you expect to get
  • Your weekly income is around £120

Can I apply to Tax-free Childcare if I’m getting tax credits, universal credit, a childcare bursary or grant, or childcare vouchers?

Before applying to a Tax-free childcare scheme, it is important to know that you cannot claim this benefit if you are already claiming tax credits, universal credit or childcare vouchers.

Before deciding on which of the above options to choose, it’s better to check what the best scheme for your family will be. You can check this on the government website.

Tax credits

Consider that if you apply for Tax-free Childcare and this gets approved and you are receiving Tax credit or Child tax credit, Tax credit or Child tax credit this will stop straight away, and you won’t be able to apply for them again.

Childcare vouchers

If you are receiving childcare vouchers and you want to apply for Tax-free childcare, you must inform your employer within 90 days before your application for Tax-free childcare, so that they will stop providing the vouchers.

You are obliged to give HMRC evidence that you are no longer receiving the childcare vouchers; you can prove this with:

  • a copy of the letter telling your employer that you’re leaving the childcare voucher scheme
  • copies of your payslips showing your pay before and after you’ve left the scheme

Universal Credits

If you are receiving Universal Credits, you don’t need to cancel this before applying for Tax-free Childcare. You can apply for Tax-free Childcare while you are receiving Universal Credits, and once your Tax-free Childcare has been approved, you can cancel your Universal Credit claim.

Bursaries

You won’t be able to apply to Tax-free childcare if you or your partner are already receiving childcare bursary or are waiting to receive this within the next 3 months. You will need to cancel this benefit or the process of application before applying for Tax-free childcare.

Tax-free Childcare application

Are you interested in applying for Tax-free Childcare? You can apply here

If you have a partner, you will need to include them in the application. If you are separated, only one of you can apply for this benefit.

Why Work with Little Ones Payroll Service?

All the trouble of meeting these mandatory requirements would be easy if you put them all in the hands of qualified individuals. Little Ones Payroll is just the right company for that, as the leader in Nanny Payroll Services for more than 15 years today.

Little Ones Payroll is led by a team of experts who assist clients in the most extensive way. They offer payroll services even to those who aren’t considered clients, but the full advantage will be experienced when the client registers.

If you register as a client of Little Ones UK, we would like to offer you three months of complimentary payroll services even if you do not end up hiring through Little Ones. For a client that hires through Little Ones UK and pays a search fee, you will receive 6 months of complimentary Payroll Service. This includes:

  • Registering you as an employer
  • Setting up a PAYE scheme
  • Generating weekly or monthly payslip
  • Tracking your nanny’s Insurance contribution and Income Tax and providing instructions on how to pay these
  • Assisting with filing your annual tax return
  • Handling the complete record of payroll
  • Access to our HR services
  • Support in any work-related queries, including maternity and sickness

With Little Ones Payroll Service excellence and commitment, the team pride itself on delicately aligning a premium, luxury service to those who put their trust in us.

Would you like to know more about our payroll service and the benefits you obtain? Please call us on 020 7183 0309 from 8:30 am to 6:00 pm Monday to Friday or send us an email to payroll@littleoneslondon.co.uk, and one of our payroll assistants will be happy to help.