Tax child free hours at nursery

How does this work and how is it calculated? My son currently goes nursery 2 days a week (will be 3 from September). I finally have my code so keen to understand this and save some 💰
Share Mobile
  • Share

Show your support

Tax free childcare and and funded hours for working parents are different. Tax free childcare is available to anyone (earning under £100k) and basically means you can get 20% off your childcare bill if you pay via the government portal. This can be used up until the child starts highschool. The funded hours are available to parents who are both working (I think it's a minimum of 14 hours a week) where the government pay for term time hours for your child. From this September it will be 15 hours a week increasing to 30 from September 2025. If you have your code you need to pass this on to your nursery so they can apply for your child. They will then calculate what you own and you pay the remainder. You can pay this using the tax free childcare account so again, you can take a further 20% off the bill.

@Anon sorry for jump into your explanation. So I can have 15 funding hours plus extra tax free of 20% off for extra hours ?

Read more on Peanut
Trending in our community