Tax Free Childcare
'Tax Free Childare' is the new Government scheme that helps parents with the cost of childcare. It is one of the 4 forms of financial assistance available to nanny employers who employ a registered or approved nanny. You can find out more about these schemes here. Each of the types of financial help has eligibility criteria. For tax free childcare these include being in work (employed or self-employed), earning more than £115 per week but less than £100,000 per year and having an eligible child. Tax Free Childcare cannot be used by parents who are also getting Childcare Vouchers, Tax Credits or a Childcare Grant for students. Parents will need to decide which system suits their family best using the childcare calculator.
Like childcare vouchers your salary will be paid directly into your bank account. When you register with the scheme you will need to provide your bank details. Registration is free, but you will need the letter with your unique Iser ID to register. The system also asks for your Business postcode. Use the postcode on the letter. This may be your home or your work address. You will need to be registered with the scheme before parents can pay you.
Letters are being sent using details from the regulator so you will need to check that your home and work addresses are up to date. You can do this using Ofsted online if you are in England. If you have not received a letter it may have been sent to a previous work address. Previously letters were sent to work addresses but the system has now been modified to send the letter to your home address. If both your home and work addresses are correct but you have not received a letter call the Tax-Free Childcare helpline on 0300 123 4097. They will ask you to confirm your details and send you a new letter. Confirm which address they plan to send the letter to.
You can download a more comprehensive Guide to Tax Free Childcare here.