It has recently been announced by HMRC that the new Tax-Free childcare scheme is to be introduced in 2017.
They have released more information regarding the specifics of the scheme. To be eligible, families will have to have all parents in work and each are expected to earn at least £115 per week and less than £100,000 a year. They must also not be receiving support through traditional Credits or Universal Credit. The government will then top up the account with 20% of childcare costs up to a total of £10,000 – the equivalent of up to £2,000 support per child per year. HMRC are requesting childcare providers to register for the scheme as soon as they can. Throughout September and October 2016, letters are being sent to regulated and approved childcare providers asking them to sign up online for Tax-Free Childcare. Only childcare providers registered with a regulator (such as Ofsted) can receive Tax-Free Childcare payments. The government will make more information available, including details of how parents can sign up, later this year.