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Are you self employed and feel like you are missing out on childcare vouchers offered to others through their employment?! Well you may not be aware but you too can benefit from tax-free childcare under a government scheme that started on 21 April 2017.

Here are ten things you need to know about the scheme;

1. Government top-up

For every £8 that you or someone else pays into your account the government will top up an extra £2. There is a limit of £10,000 per child per year so the government will pay a maximum of £2,000 per child per year (or £4,000 for disabled children) into your account.

2. Available for children who are under 12 years old

All children under 12 are eligible or if you have a child with a disability then the age limit is under 17.

3. Earnings threshold

In order to qualify both parents must be in work (not necessarily full time) and earn over £120 per week and under £100,000 each per annum.

4. No need to rely on employers offering a scheme

Unlike Employer – Supported Childcare the Tax-Free Childcare scheme is available to all working families and doesn’t rely on employers offering it.

5. Available for the self-employed

This scheme is available to those who are self-employed and to those who are directors of director only companies unlike Employer – Supported Childcare. Also as added support to the self-employed if you are in your first 12 months of trading then you do not have to meet the minimum income level of £120 per week.

6. You don’t have to switch from Employer – Supported Childcare

If you are employed and currently receive childcare vouchers through salary sacrifice then you can continue to do so as that scheme will stay open to new entrants until April 2018. After this you can carry on if your employer still offers it.

7. Flexibility over payments into account

You are able to pay more into your account in some months and less in others if you wish to. This may be especially useful if you want to build up a balance to cover additional childcare in the summer holidays!

Grandparents, other family members and employers can also pay into your account if they want to.

8. Online account

You will need to open an account through the government website so that you can pay money into this account which then gets passed on to your chosen childcare provider.

9. Simple process

Using an easy online process you will just need to confirm your circumstances every three months. Also there will be a simple log-in service which will show all of the children on your account.

10. Able to withdraw money from account at any time

If your circumstances change and you no longer want to pay into the account then you can remove any balance. The government will withdraw their corresponding contribution.

If you are interested in setting up an account then click here.

JLA Accounting Limited takes every care in preparing material to ensure that the content is accurate and up to date. However, no responsibility for loss for anyone acting from or refraining from acting as a result of this information can be accepted by JLA Accounting Limited.