Tax free childcare scheme, also available for self-employed

In Autumn 2015 there is due to be a new tax-free childcare scheme to support working families with their childcare costs replacing the current salary sacrifice” scheme.

20% Government contribution

The new scheme is simple; for every 80p contributed by the parents, the government will contribute an additional 20p (so 20%). This is to a limit of £10,000 per child for annual childcare costs so worth a potential £2,000 per child per year. Initially, this scheme is available to cover childcare costs for under 5 year olds but over time it will increase for up to 12 year olds.

The new scheme will be available to the self-employed

A few other points to note:
  • Parents can choose their own voucher provider
  • Vouchers can be used at any Ofsted regulated childcare centre
  • To be eligible neither parent can earn over £150,000 per year
  This will be good news to many of our doctor and dental clients who have families

For more information


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