The cost of childcare in the UK has increased significantly compared to rest of the world. A recent research sugests many parents in UK are now spending more on childcare than their mortgage.

Government recently stopped “Childcare voucher” via salary sacrifice and introduced new scheme called “Tax free childcare”.

If you are Contractor or a Freelancer earning less than £100,000 per annum. (Dividends + Salary) you can get help from Government to subsidise your Childcare costs. Below are the list of Childcare supports available to you.

15 Hours of free Childcare for 2-year-old
  • Only for Families in England, but you can find similar schemes in Scotland, Wales and NI
  • You need to be receiving some form of income support to be eligible (Income Support, Jobseeker’s Allowance (JSA), Tax credits and have an annual income under £16,190 before tax)
  • There are additional eligibility criteria’s if your child gets a Disability Living Allowance; looked after by a local council; special education needs (SEN) or an education, health and care (EHC) plan.
  • If you are eligible, you’re entitled to 570 hours of free childcare a year, to use flexibly at participating,
  • Nurseries and nursery classes
  • Playgroups and pre-school
  • Childminders
  • Sure Start Children’s Centres

For the full details on this please click here

15 Hours of free Childcare for 3 & 4 year olds
  • Only for Families in England, but you can find similar schemes in Scotland, Wales and NI
  • Available to everyone and not limited as above. (Point 1)
  • You’re entitled to 570 hours of free childcare a year, to use flexibly at participating,
  • Nurseries and nursery classes
  • Playgroups and pre-school
  • Child minders
  • Sure Start Children’s Centres

For the full details on this please click here

30 Hours of free Childcare for 3 & 4 year olds
  • Only for working Families in England
  • You, and any partner, must each expect to earn (on average) at least £120 a week (equal to 16 hours at the National Minimum or Living Wage). If you, or your partner, are on maternity, paternity or adoption leave, or you’re unable to work because you are disabled or have caring responsibilities, you could still be eligible.
  • If you, or your partner, expect to earn £100,000 or more you are not eligible for this.
  • Before applying check with your nursery or preschool whether they accept 30-hour free child care.
  • If your Child was born on or 1st September 2012 you can apply online now by clicking here (Pls have P60, NI number and UTR number)
  • You’re entitled to 1140 hours of free childcare a year, to use flexibly at participating,
  • Nurseries and nursery classes
  • Playgroups and pre-school
  • Child minders
  • Sure Start Children’s Centres

For the full details on this please click here

Tax – free Childcare for 0-11 Year olds (0-16 if Disabled)
  • New Scheme for working Families in UK
  • This will replace “Childcare voucher” Scheme after April
  • For every £8 you pay in, the government will add anextra £2, up to £2,000 per child per year
  • Your payment is from your personal Net income (i.e Cannot be paid from your company)
  • You, and any partner, must each expect to earn (on average) at least £120 a week (equal to 16 hours at the National Minimum or Living Wage). If you, or your partner, are on maternity, paternity or adoption leave, or you’re unable to work because you are disabled or have caring responsibilities, you could still be eligible.
  • If you, or your partner, expect to earn £100,000 or more you are not eligible for this.
  • You cant use this at the same time as childcare vouchers (Point 5 below), Universal Credit or tax credits.
  • You can use it with the 15 hours and 30 hours schemes.
  • You can use it to help pay:
  • Registered childminders, nurseries and nannies
  • Registered after-school clubs and play schemes
  • Registered schools
  • Home care workers working for a registered home care agency
  • You need to create an online account via this link to start contributing
Tax credits and Universal Tax credits for Childcare for 0-15 Year olds (0-16 ifDisabled)
  • If you are receiving government benefits such as Working Tax Credit or Universal Credit you might be eligible for this
  • You can use below independent benefits calculator to find out what you could get
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  • Turn2us

For the full details on this please click here

Child Benefit
  • You get Child Benefit if you’re responsible for one or more children under 16 (or under 20 if they stay in approved education or training).
  • There’s no limit to how many children you can claim for.
  • Only one person can get Child Benefit for a child. You may have to pay a tax charge if your (or your partner’s) individual income is over £50,000.

We found that the Government website  https://www.childcarechoices.gov.uk/#very useful and urge you to read this to get further clarification and details.

You can also be able to get Child benefit if you and your partners income is less than £50,000 each child under 16 (or under 20 if they stay in approved education or training). You will get £20.70 per week for eldest or only child and 13.70 per week for every additional child. The amounts will be paid to your personal bank account monthly and only one of the partners can get this. You need to fill in a Child Benefit claim form CH2 and send it to the Child Benefit Office with your child’s original birth or adoption certificate.

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