From early 2017, the government will be implementing a tax-free childcare scheme for working parents with children under the age of 12 (or under the age of 17 for disabled children). This scheme will help around two million working households with the cost of their childcare.
How will the scheme work? So far, this is what we know (see below), however if you have any further questions please give Ofsted a call on 0300 123 1231.
First of all, parents must qualify in order to take advantage of the scheme. To quality, parents must be employed and each earning at least £115 per week, but not more than £100,000 each per year. Your nanny or childcare provider must also be registered with Ofsted.
Parents will need to set up an online childcare account to pay their nanny or childcare provider directly. For every £8 parents pay in, the government will add 25% (£2), and up to a maximum contribution of £2,000 per child, per year. For disabled children, the government will contribute up to a maximum of £4,000 per year.
Our friends at Nannytax have put together some really helpful fact sheets, which will help answer a lot of questions you may have around the scheme:
For nannies/child providers
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