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The Independent Automotive Aftermarket Federation

Tax-free childcare scheme (April 2017)


Date: 24-May-2017

In terms of employment law, definition can be quite loose. So whilst this mainly affects parents rather than employers, it is a key change for many self-employed parents.

The tax-free childcare scheme is a new government initiative, designed to help working parents (including the self-employed) manage the cost of childcare.  Briefly, for every £8 a parent pays in to their online account, the government will pay in an extra £2. Parents will be able to get up to £2,000 a year for each child under the age of 12, and £4,000 for disabled children aged under 17.

You’ll need to be in work and expecting to earn £120 minimum a week, and each parent can’t be earning more than £100,000 a year. Read Gov.uk’s article for more information on who’s eligible and how to benefit.

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