Guidance

Tax-free childcare (TFC)

Published 16 December 2022

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This publication is available at https://www.gov.uk/government/publications/guidance-for-service-personnel-and-their-families-on-child-welfare-policies/tax-free-childcare-tfc

TFC is a government scheme introduced in April 2017 to help working parents with the cost of childcare. Parents can open an online savings account which they can use to pay for childcare from an accredited and registered provider.

The Offer

UK

Working parents, including the self-employed, with children 0-11 (16 if disabled) can get TFC.

Get Tax-Free Childcare: step by step and save up to £2,000 per child per year. For every £8 parents pay in, the government will add an extra £2.

Overseas

Service parents and entitled MOD Civilians can access TFC when using MOD approved childcare providers (including within schools, nurseries and registered childminders). The TFC DIN can be accessed via Defence Instructions and Notices - Home (sharepoint.com) - (DIN Ref. 2022DIN01-102).

What parents need to do

  • Visit Childcare Choices to apply and see the choices available.
  • Search for childcare providers signed up to TFC. Please note: when searching for MOD providers, parents need to enter the provider reference number followed by the relevant BFPO number in the search field.

Eligibility

You can join TFC if one or more of the following applies:

  • Do both you and your partner work 16 hours per week or more (earning at least National Minimum Wage) (NMW) or National Living Wage (NLW)?
  • Your individual annual employment income is below £100,000.
  • You are single parent.
  • You have a child or children aged under 12 (under 17 if disabled).

You can’t join TFC if you use:

  • Universal credit
  • Tax credits
  • Childcare Vouchers (closed to new entrants).

A list of MOD approved childcare providers overseas can be obtained by visiting the DCYP gov.uk page or contacting local Command or settings.

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