Tax Free Childcare

Bright Horizons is an Ofsted-registered childcare provider, proudly accepting tax-free childcare payments. To help you get started, we've created a handy Tax-Free Childcare Guide covering how it works, how to apply, and how to make payments.

Tax Free Childcare

A Step-by-Step Guide to Tax-Free Childcare

Tax-Free Childcare can be a fantastic way to reduce the cost of childcare for you and your family. However, we understand that the process can feel a bit overwhelming at first.

That’s why we’ve created a simple, step-by-step guide to help you get started. In this guide, we’ll walk you through what Tax-Free Childcare is, how it works, how to apply, and how to make payments for your childcare.

What is Tax-Free Childcare and How Does it Work?

Tax-Free Childcare is a government initiative designed to help working parents with childcare costs.

To take part, you’ll need to open an online account through the GOV.UK website. This account allows you to pay for childcare with a registered provider, and for every 80p you (or someone else) pays in, the government will add an extra 20p. This is the equivalent of the tax rate most people pay—20%, which is where the scheme gets its name.

The government will contribute 20% of your childcare costs, up to a maximum of £10,000. This means you could receive up to £2,000 in support per child, per year—or up to £4,000 for children with disabilities.

How Many Children Does the Tax-Free Scheme Cover?

The great news is that if you’re eligible, you can apply for funding for all of your children at once, as long as they live with you and meet the age requirements. This includes adopted children, who are also eligible. Children must be under 12 years old, but for those with disabilities, the age limit extends to 17, as their childcare costs often remain higher for longer.

Step 1 - Check Eligibility

To apply, you first have to check if you’re eligible. You can do this here.

Your eligibility depends on a few factors. To find out more, visit the government website:

When choosing the best support for your family, it’s essential to consider if Tax-Free Childcare is the right option, especially if you're already receiving Working Tax Credit, Child Tax Credit, Universal Credit, or childcare vouchers. Every family has unique needs, and understanding your options will help you make the most informed decision.

To find out which scheme serves you best, you can use our childcare calculator.

* Please be aware that if your Tax-Free Childcare application is approved, your Working Tax Credit or Child Tax Credit will cease immediately. Once this occurs, you will not be able to reapply for these credits.

Step 2 – Apply

Now that you’ve checked your eligibility and decided that the Tax-Free Childcare Scheme is right for you and your family, it’s time to apply. All you need are a few details about you (and your partner, if applicable), and 20 minutes!

You’ll need your details (and your partner’s, if applicable), including your:

  • National Insurance number
  • Unique Taxpayer Reference (UTR), if you’re self-employed

As part of the application process, you'll find out if you're eligible for Tax-Free Childcare. If you live in England, you’ll also learn whether you qualify for 30 hours free childcare. While you may receive an immediate response, it can take up to a week for eligibility to be confirmed.

How To Pay Your Childcare Provider

Your chosen childcare provider needs to be approved by the government for you to be able to pay them with your Tax-Free account.

The accepted types of childcare providers are:

  • Registered childminder, nanny playscheme, nursery or club
  • Childminder or nanny from a registered childminder agency or childcare agency
  • Registered school
  • Home care worker working for a registered home care agency

The rules about how childcare providers become approved are different depending on where you live. You can check if a childcare provider is approved or search for one in:

If you want to claim 30 hours funded childcare in England, your chosen provider must be registered on the Early Years Register with Ofsted or with a registered early years childminder agency. It’s best to check directly with your provider to make sure they’re eligible.

Once your application is approved, you can start paying your provider tax-free using your government childcare account. Simply log in to your account here. After your payment appears as ‘cleared funds’, you can transfer it to your provider. Payments usually appear in the provider’s account within 24 hours, depending on their bank.

Download our guides

Whether you’re exploring nursery options or already part of our Bright Horizons community, our helpful funding guides are here to support you. Discover everything you need to know about funding your childcare — including government-funded hours, tax-free childcare, childcare vouchers, and key dates to keep in mind. We’ve made it easy to understand what support is available and how it can work for your family.

Character Building

Are you a current Bright Horizons parent?

You might be entitled to more funding than you think, especially as your child grows with us!

Speak to your Nursery Manager today to find out more.

Bright Horizons Family App

Still have questions?

Book a personal tour with us today! We'll walk you through everything related to fees, funding, what’s included and more, answer all your questions, and help you find the best options for your family.

Book a personal tour online or give us a call.

Tax Free Childcare

Funding Policy

For our 2025 funding policy, please click here to find out more

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Other funding options...

15 Hours Funded Childcare

15 Hours Funded

In England, there are two government funded 15 hours free early education schemes that offer childcare for children aged two, three and four.

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30 Hours Funded Childcare

30 Hours Funding in England

Bright Horizons are pleased to offer 30 hours funded childcare for all eligible families.

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1140 Hours Funded Childcare - Scotland

1140 Hours Funding in Scotland

If your child is 3 or 4 years old, then from August 2021 you will be able to access up to 1140 hours of funded Early Learning and Childcare a year.

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Childcare Vouchers

If you joined either one of these schemes on or before 4 October 2018, you're still able to receive these vouchers and use them to support your childcare payments with us.

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