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Are You Eligible for Childcare Vouchers & Tax-Free Childcare?

Are You Eligible for Childcare Vouchers & Tax-Free Childcare?

As parents ourselves, we know just how eye-watering childcare costs can be - from school holiday camps to after-school clubs. The good news is that many government childcare support schemes cover children of all ages, not just pre-schoolers.

With the Government’s Tax-Free Childcare scheme, eligible families can claim up to £2,000 per child every year until 1 September after their child’s 11th birthday (or up to age 16 for children with disabilities, where families can claim up to £4,000 per child).

Here’s everything you need to know about Childcare Vouchers and Tax-Free Childcare.

Who Accepts Tax-Free Childcare?

Whether you’re paying using Childcare Vouchers or Tax-Free Childcare, the key thing to check is that your childcare provider is registered and regulated.

For example, The Strings Club is Ofsted-registered, meaning we’re able to accept both Tax-Free Childcare payments and Childcare Vouchers.

Most childcare providers will clearly state on their website whether they’re registered. You can also check with:

  • Your local authority’s children’s services department
  • Your nearest Family Information Service
  • Family & Childcare Trust

These services can help you find approved childcare providers in your area.

What Is Tax-Free Childcare?

Tax-Free Childcare is a Government-backed scheme launched in 2017 to help working parents with childcare costs.

For every 80p you pay into your childcare account, the Government adds 20p - effectively giving you basic-rate tax relief on childcare spending.

How much can you get?

You can receive:

  • Up to £2,000 per child per year
  • Up to £4,000 per disabled child per year

The scheme can be used towards up to £10,000 of childcare costs per child annually.

Once you hit the yearly maximum Government contribution, you can still use the account to pay providers, but no further top-up will be added for that year.

Tax-Free Childcare is open to:

  • Working parents
  • Self-employed parents
  • Single parents

However, in two-parent households, both parents must be working to qualify.

It’s important to note that you cannot usually use Tax-Free Childcare at the same time as:

  • Universal Credit childcare support
  • Tax Credits childcare support
  • Childcare Vouchers

Tax-Free Childcare Eligibility Criteria

Below are the main eligibility criteria. For full guidance, visit the official Government website.

To qualify:

  • Your child must be aged 11 or under (or 16 or under if disabled)
  •  Both parents (or the single parent) must be working
  • Each parent must expect to earn at least the equivalent of 16 hours a week at the National Minimum or Living Wage over the next 3 months
  •  Each parent must earn less than £100,000 per year
  • Self-employed parents can apply
  • You must live in the UK
  • Your child must live with the parent claiming the benefit

For the latest information, visit the official Government page:
Tax-Free Childcare Guidance

What Are Childcare Vouchers?

Childcare Vouchers were a popular salary-sacrifice scheme that allowed parents to pay for childcare using pre-tax income.

The scheme closed to new applicants in October 2018. However, you can still use Childcare Vouchers if:

  • You joined the scheme before October 2018
  • You remain with the same employer
  • Your employer still offers the scheme

For many families, Childcare Vouchers can still provide significant savings each year.

Tax-Free Childcare vs Childcare Vouchers: Which Is Better?

The best option depends on your personal circumstances, including:

  • Your income
  • Number of children
  • Childcare costs
  • Whether you’re already enrolled in Childcare Vouchers

It’s important to note that you cannot use both schemes at the same time.

If you’re unsure which option is best for your family, take a look at the Government’s comparison guidance here:
Childcare Choices Comparison Guide

Looking for Holiday Clubs?

The Strings Club Holiday Camps accept both Tax-Free Childcare and Childcare Vouchers at many of our Ofsted-registered venues.

If you have any questions or would like help booking with childcare vouchers, feel free to call us on 0121 296 9204.

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