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Tax Free Childcare (TFC)

08 April 2014

What is Tax Free Childcare (TFC)

Tax-Free Childcare is a proposed government scheme which will replace the existing Childcare Voucher Scheme. Under the new scheme families could receive up to 20% of their annual childcare costs paid by the government.

How does the New scheme affect me?


The new Tax-Free Childcare scheme, or TFC - is being rolled out by government from April 2017.The government will pay £2 for every £8 parents pay for childcare. This is capped at £2,000 a year. While some parents will be better off with TFC, some will save more money with childcare vouchers.Childcare voucher schemes, like the one we offer, will only stay open to new entrants until October 2018. After that time, TFC will be the only option. As a parent, it’s important to find out which scheme works best for you and help you make the right choice for your family. You can check out the Government Childcare Choices website and use the calculators for a more personal illustration.. However if your employer is not currently part of the the current scheme then why not tell them about it! (


Under the new TFC there is no part for employers. Where in the current employer supported childcare offering your employees this benefit also means tax savings for you!. if you are part of the employer supported childcare once changes are applied to TFC you wont be able to accept any new joiners.

Childcare Providers

There is isn’t much change for childcare providers under TFC parents will go to their online account and set up one off or regular payments to you. If parents are still part of the employer supported childcare you can still accept childcare vouchers as normal.

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