TFC08500 - Entitlement: qualifying paid work

Introduction 

Childcare Payments Act 2014, section 9  

A person meets this condition of eligibility if the person is in qualifying paid work on the date of the declaration.  

Paid work includes employment and self-employment which carries a reasonable expectation of income. Paid work specifically excludes charitable or voluntary work in return for expenses.   

Requirement to be in qualifying paid work 

Childcare Payments (Eligibility) Regulations 2015, regulation 9(1)  

A person is in qualifying paid work if they (or any partner) hold a valid National Insurance number and the person is in paid work as an employed person, a self-employed person or an employed and self-employed person whose expected income from the work in the period of 3 months beginning with the date of the declaration of eligibility (or the date the person expects to start work if they are not currently in employment but expect to start in the next 31 days) is greater than or equal to the relevant threshold.   

Note: A person who is self-employed and does not get paid regularly can use an average of what they expect to earn over the current tax year to meet minimum income requirements if their income over the specified 3-month period is not expected to be greater or equal to the relevant threshold. If they do so, then they may not mix employed and self-employed income in making the test. 

Childcare Payments (Eligibility) Regulations 2015, regulation 9(1)(A)  

The requirement to hold a National Insurance number does not apply to a person’s partner who is resident and in paid work in a prescribed state.  

Persons who can be treated as in qualifying paid work 

Childcare Payments (Eligibility) Regulations 2015, regulation 9(2)  

A person will be treated as in paid work during the “applicable period” if, at the time of making the declaration of eligibility, they have either:

  • accepted an offer of work on or before the date of the declaration of eligibility; or
  • are on unpaid leave on the date of the declaration of eligibility and intend to return to work.

The ‘applicable period’ is the timeframe before a person starts or returns to work during which they are still treated as being in paid work and can submit a declaration of eligibility for Tax-Free Childcare. This period is determined by their expected work start date:

If the expected work start date is between the 1 February and 30 April

The applicable period begins on 1 January of the same year and ends the day before the day the person starts or returns to work.

If the expected work start date is between 1 May and 30 September

 The applicable period begins on 1 April of the same year and ends with the day before the day the person starts or returns to work.

If the expected work start date is between 1 October and 31 January

 The applicable period begins on 1 September immediately before the 1 October start date and ends with the day before the day the person starts or returns to work.

Example:

Sarah’s expected work start date is 15 June.  This falls between 1 May and 30 September.  Therefore, the applicable period begins on the 1 April of the same year and ends with the day before the day she starts work.  In this case the applicable period would run from 1 April to 14 June.

Childcare Payments (Eligibility) (Amendment and Transitional Provisions) Regulations 2025, Regulation 3(a)

The exception to the applicable periods provided in regulation 9 (2A) of the Childcare Payments (Eligibility) Regulations 2015 is when an expected work start date falls in the period beginning on 16 October 2025 and ending on 31 January 2026.  In this case a person will be treated as in paid work as an employed person for the period beginning on 15September 2025 and ending with the day before the day the person starts or returns to work.