Features

Guide to: Tax-free Childcare Vs Vouchers

As part of a new series of handy guides on management issues, we look at Tax-Free Childcare and compare the system to childcare vouchers

AT A GLANCE

Tax-Free Childcare is worth up to £2,000 per child per year and pays towards childcare costs at more than 58,000 registered providers including schools, football, art and tennis clubs.

For every 80p a parent puts in, the Government will add 20p – giving, effectively, basic-rate tax back on what is paid, hence the scheme’s name. The scheme can be used to pay for up to £10,000 of childcare per child each year – hence the £2,000 per child saving (this is £4,000 for a child who is disabled).

Parents can get Tax-Free Childcare at the same time as the 30 hours free childcare if they are eligible for both.

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