Claim £2000 Towards the Cost of a Nanny!

The government will pay up to £2000 per year towards the cost of employing a nanny via the Tax free childcare scheme. So for every 80p you put into your Tax-Free Childcare account, the government will add 20p. 

Or for a more substantial take on it, if your childcare bill is £800 a month, you’d pay £640 and the government would contribute a rather decent £160. Not bad when you put it like that hey?! You are basically paying no tax on your childcare costs – the clue is in the name!

Tax free childcare is offered PER child, not per family. So if like me you have 3 bundles of joy, the savings are tripled and therefore makes a much more affordable return to work. It’s a win, win!

Tax free childcare can only be used to pay for ‘approved, regulated childcare’ therefore your Nanny MUST be or be willing to become Ofsted Registered.

Find more information here –

Are You Eligible for Tax Free Childcare?

The tax free childcare scheme does come with a eligibility criteria that parents must meet in order to be accepted:

  • Both you (and your partner if you have one) must be working (employed or self-employed) and being paid at least the National Minimum Wage for 16 hours per week; there are some exceptions to this and you may still be eligible if 
  • You are on sick leave
  • You are on annual leave 
  • You are on shared parental, maternity, paternity or adoption leave
  • You or your partner is in work and the other isn’t able to work and receives certain benefits such as: incapacity benefit, carer’s allowance or the severe disablement allowance.
  • Neither parent (individually) may earn taxable income in excess of £100,000 per annum; and
  • The child in respect of which you are applying must be under 11 (or 16 for those with disabilities) and usually living with you.

Check if you are eligible here –

How Does my Nanny Become ‘Ofsted Registered’?

Your Nanny will need to register on the voluntary part of the childcare register and can apply via the Ofsted website. It costs £103 and will need to be renewed annually. Registration can take up to 12 weeks.

Your Nanny will also need to have…..

  • An up to date Enhanced DBS certificate
  • A minimum Level 2 qualification in childcare or training in the common core skills
  • An appropriate First Aid Qualification suitable for the ages of the children that they will be looking after
  • Public Liability Insurance

Nannies can register on the voluntary part of the childcare register here –

How do I Access the Tax Free Childcare once my Nanny is Ofsted Registered?

When Ofsted send your Nanny their registration certificate, they will also automatically send their details on to HMRC.

YOU will need to apply for an online tax free childcare account via the Government Gateway. This is the account that you will pay money into for your childcare costs and also where you will pay your Nanny from, directly into their bank account.

You can pay into your account at any time and will receive the Government top up instantly.

You MUST sign in every 3 months to confirm that your details are all correct and up to date to continue receiving the tax free childcare.

Apply for Tax Free Childcare here –