Tax Free Childcare & Vouchers

Tax Free Childcare & Vouchers

Tax Free Childcare

As Woodlands Nursery is a registered provider of tax-free childcare, we thought it would be useful to produce a comprehensive guide on the subject, answering your main questions on the subject.

What is Tax-Free Childcare?
Tax-Free Childcare is where eligible parents receive 20% of their annual childcare costs paid for by the Government! This means that for every 80p you pay, the Government pays 20p. There is however, a maximum amount of £10,000 per year childcare costs per child, meaning you will receive a maximum of £2,000 contribution per year.

How does Tax-Free Childcare Work?
The scheme operates through an online Childcare account, where parents and the Government pay into. You will pay your childcare fees directly into this account and Government will 'top-up' the account with their contribution.

The money will then be paid directly to your childcare provider e.g. Woodlands Nursery

How do I Qualify for Tax-Free Childcare?
To be eligible for Tax-Free Childcare you must:

  • Have one or more children aged under 12 to be eligible to apply.
  • Work at least 16 hours a week, being paid the National Living Wage or higher - this means both of you if you're in a couple.
  • Earn under £100,000 a year. This applies to both of you if you're in a couple (so if one earns more than £100,000, then - as a couple - you can't access Tax-Free Childcare).
  • Not be claiming tax credits (this includes the childcare element of Working Tax Credit) or universal credit.
  • It is also open to single parents/couples who work eight or more hours a week, including self-employed, and who pay for Ofsted-registered childcare for a child under the age of 12, or under 17 if the child is disabled.

Will using Tax-Free Childcare affect my fees?
The Tax-Free Childcare will not impact your fees, its an option to help burden the cost of childcare.

How to claim Tax-Free Childcare?
The process is very simple, follow these steps:

  • Create an online account on the government website. This will be very similar to a normal savings bank account.
  • You are then able to pay into the savings account at your own pace. You will also be able to remove money if you need to.
  • When you need to pay for childcare, you will be able to pay directly to Woodlands from this account.
  • When you pay your childcare, the amount received by the Woodlands will be 20% higher (as long as you still have benefit left).

Need more information?
Here is a useful link which may answer any questions we have been able to cover here -

Voucher Schemes

At Woodlands we accept vouchers as form of payment or part payment for you child's fees, we are currently signed up to multiple schemes and providers.
If the scheme that you wish to use we are not signed up to this is not a problem we are happy to sign up to any scheme to help Families with payment for childcare fees.
Please reach out to us directly to discuss further.