How to apply
Applying for Tax-Free Childcare is an online process on GOV.UK, through the Childcare Service. It usually takes about 20 minutes. If you live in England, the same application also checks whether you are eligible for Free Childcare for Working Parents, so you do not need to apply twice for the two schemes. Have your details ready before you start, and have your partner nearby if you have one, because you will each need to answer questions about yourselves.
What you need
For yourself and your partner, where you have one, you will need your National Insurance numbers, and your Unique Taxpayer Reference if you are self-employed. For each child you are applying for, you will need the UK birth certificate reference number if you have it — the application can proceed without it, but having it ready speeds things up. You will also need the date you started, or are due to start, work; this can be approximate if it was more than three months ago.
If you have a partner, you must include them in the application if you are married or in a civil partnership and live together, or if you are not married or in a civil partnership but live together as though you are. There are two exceptions: their employment and income will not affect your eligibility if they have been absent from your household for more than six months, or if they are a prisoner. You and your partner cannot both hold accounts for the same child. If you are separated and jointly responsible for a child, you need to decide between you who should apply; if you cannot decide, both of you must apply separately and HMRC will decide who gets the childcare account.
The steps
First, sign in to or create a Government Gateway account, and verify your identity — a passport, payslip, or P60 details usually work. Second, complete the joint application, answering the eligibility questions for yourself, your partner, and each child. Third, receive the decision: most parents are told immediately on screen. If HMRC needs extra checks, the decision can take up to 10 days; if you have heard nothing after 10 days, contact the Childcare Service helpline. Fourth, set up your childcare account for each child and add your provider by searching for them by name, town, or postcode. Fifth, pay money into the account and start paying your provider from it. Sixth, and most easily forgotten, reconfirm every three months.
When to apply if you are starting or returning to work
You can apply at any time, with one exception: if you are starting or restarting work, or you are on maternity, paternity, shared parental, or adoption leave, your start or return date decides when you may apply. The windows are:
| If you start or return to work between | You can apply from |
|---|---|
| 1 May and 30 September | 1 April |
| 1 October and 31 January | 1 September |
| 1 February and 30 April | 1 January |
If you are a company director, HMRC will try to check your minimum income from your PAYE records. If you do not submit regular PAYE information, you may need to provide evidence that you are working and expect to meet the minimum income requirements for the next three months — wage slips, bank statements, a statement from your accountant, or copies of invoices. If you are not paid regularly, for example once a year, you may need annual wage slips, year-end payroll, or a letter from your tax agent or adviser confirming your salary has been paid and taxed. You will need to do this the first time you apply, and every time you reconfirm.
Sources: GOV.UK, Tax-Free Childcare (apply, what you need, when to apply, and frequently asked questions); Best Start in Life, How Tax-Free Childcare works.