Tax-Free Childcare

You can save money on childcare by paying your approved provider through a Tax-Free Childcare account.

For every £8 you pay in, the government adds £2. You then use the account to pay your childcare provider directly.

Who can get Tax-Free Childcare

Eligibility depends on:

• your child’s age and circumstances
• your household income
• whether you’re working or self-employed
• your immigration status

You may be able to use the scheme if:

• your child is under 12, or under 17 if they have a disability or sight impairment
• you and your partner (if you have one) each earn at least the National Minimum Wage for 16 hours a week, on average
• your household doesn't expect to earn more than £100,000 (adjusted net income) this tax year
• you are self‑employed and your business is less than 12 months old
• your partner is working and you get Carer Support Payment or New Style Employment and Support Allowance (contribution‑based)

You can use Tax-Free Childcare alongside the 1,140 hours of funded early learning and childcare your child may get from the Scottish Government.

When you cannot use Tax-Free Childcare

You cannot use the scheme if you or your partner:

• receive a childcare bursary or grant
• get Universal Credit
• get Childcare Vouchers

Universal Credit and Childcare Vouchers usually give more help with childcare costs. The Childcare Vouchers scheme is closed to new applicants. If you already receive vouchers, you can keep using them as long as you remain eligible.

What you should do next

• Use the Fife Benefit Checker before opening a Tax-Free Childcare account. This helps you check if you could get Universal Credit, which can cover up to 85% of childcare costs.
• Use the Childcare Calculator to check what help you can get, including free childcare hours and Tax-Free Childcare. It also explains how to apply.
• Speak to your childcare provider
  • Ask for their registration number
  • Tell them you plan to pay using a Tax-Free Childcare account
  • Give them your Tax-Free Childcare account reference once it’s set up

If you're starting work or using childcare for the first time

If you’re about to start work, or you’re using childcare for the first time, you may be able to get help with childcare costs in advance.

If you need information about this, or you’d like support with a benefit check or setting up a Tax‑Free Childcare account, you can get help from any of the organisations listed below.