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A government scheme where you get 20% top-up on childcare costs, up to £2,000 per child per year.
Tax-Free Childcare is a government scheme that helps working parents with childcare costs. For every £8 you pay into a Tax-Free Childcare account, the government adds £2 (a 20% top-up). You can get up to £2,000 per child per year (£4,000 for disabled children). Both parents must be working (each earning at least the National Minimum Wage for 16 hours/week) and not earning over £100,000 each.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.