Tax Free Childcare Schemes

In this blog we are looking to summarise some of the rules involved in claiming for childcare and the tax free childcare schemes.

  1. Up to £2000 pa towards childcare costs for children up to 12 years old 
  2. Up to 30 hours of free childcare for children aged between 2 and 4 years old

If eligible you and your partner can get up to £500 every 3 months (£2,000 a year) for each of your children to help with the costs of childcare using the Government’s tax-free childcare schemes.

If you or your partner have an ‘adjusted net income’ over £100,000 in the current tax year you will not be eligible. This includes any bonuses you expect to get. Your adjusted net income is your total taxable income before any personal allowances and minus things like Gift Aid.

Successful claimants will receive a government top-up of £2 for every £8 that they pay into their Tax-Free Childcare account.

The Childcare Choices website provides information on the government’s childcare schemes and explains how parents can apply. It also includes a childcare calculator to show eligible families how much they could receive.

Children aged 0-11 years old?

Tax-free childcare schemes will reduce UK childcare costs by up to £2,000 per year for each child under 12 years old, or £4,000 per year for disabled children under 17 years old.


Working parents of two-year-olds living in England are entitled to 15 hours of free childcare a week for 38 weeks subject to them meeting the set criteria.

Working parents of three and four-year-olds living in England are entitled to either 15 or 30 hours of free childcare a week for 38 weeks (worth up to around £5,000 per child) again depending on meeting the eligibility criteria.

Parents will only need to make a single application for both schemes when their children become eligible.

Need further advice on any of the topics being discussed? Get in touch and see how we can help.

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    About Jon Pryse-Jones

    Since joining THP in 1978, Jon Pryse-Jones has been hands on with every area of the business. Now specialising in strategy, business planning, and marketing, Jon remains at the forefront of the growth and development at THP.

    An ideas man, Jon enjoys getting the most out of all situations, “I act as a catalyst for creative people and encourage them to think outside the box,” he says, “and I’m not afraid of being confrontational. It often leads to a better result for THP and its clients.”

    Jon’s appreciation for THP extends to his fellow team members and the board.  “They really know how to run a successful business,” he says.  He’s keen on IT and systems development as critical to success, and he continues to guide THP to be at the cutting edge and effective.

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