Tax-Free Childcare (TFC) was introduced gradually throughout 2017 by HM Government to help working parents with the cost of childcare and will, over time, replace the Armed Forces Childcare Voucher Scheme (AFCVS).
Parents have the option to open an online savings account, which they can use to pay for childcare from an accredited and registered provider.
For every £8 a parent pays in, the government will pay an extra £2. Parents can receive up to £2,000 per child, per year, towards their childcare care costs, or up to £4,000 for disabled children.
The scheme is available for children under the age of 12, or under 17 for children with registered disabilities. To qualify, both parents must be in paid employment (or a single parent in a lone parent family), each working a minimum of 16 hours per week. If a parent earns £100,000 or more, they will not be able to use TFC.
To register and for more detail about the scheme, please visit www.childcarechoices.gov.uk. A step-by-step guide on how to use TFC can be accessed at https://www.childcarechoices.gov.uk/how-to-use-tax-free-childcare/.
No child can be a member of both TFC and the AFCVS at the same time, but children on AFCVS can transfer to TFC at any stage if eligible.
The AFCVS closed to new joiners on 5 October 2018.