Tel: 01403 780 770

Building and protecting your wealth

TAX TIP TUESDAY: Childcare Choices – new scheme for self-employed

Our five minute read, Tax Tips for UK doctors and dentists will help you save tax, get you organised with your tax affairs and make you feel at ease that everything is taken care of.

This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. The Financial Conduct Authority does not regulate tax advice. 

In April 2017, the government introduced Childcare Choices, a scheme that helps families afford childcare and even offers free childcare for those that meet certain criteria.

Since its launch, the options have expanded and assistance has become available for more families in need of free and tax-free childcare. The latest rollout will benefit many doctors and dentists since it now includes the self-employed.

Who is eligible?

Tax-free childcare is available for working families, even those that are self-employed, with children under 12, or under 17 if disabled. Both partners need to take home at least £120 per week but neither partner can earn more than £100,000 per year.

You may still be eligible even if you or your spouse are on maternity, paternity, or adoption leave or if you are a caretaker or cannot work due to disability.

If you’re self-employed and started your business less than 12 months ago, the limit doesn’t apply.

How does it work?

The government will add £2 to a dedicated tax-free childcare account for every £8 you pay into it, up to £2,000 per child or £4,000 per disabled child. Anyone can pay into this account – yourself, family members, or even your employer.

However, funds can only be withdrawn from this account to pay for childcare services and in the event money is taken out for another purpose, the government will cease contributing to the account. The funds in your tax-free childcare account can be used to help pay registered childminders, nurseries, or nannies and home care workers working for a registered homecare agency.

Registered schools and after-school clubs and schemes are also valid uses of the funds.

Useful tips

  • Tax-free childcare can be used alongside the “15 hours” and “30 hours” schemes but cannot be used in conjunction with childcare vouchers, Universal credit, or tax credits.
  • All 3 to 4 year olds in England have access to 570 hours of free childcare annually, usually taken as 15 hours per week for 38 weeks, but can be utilised however you choose with an approved childcare centre until your child reaches reception or compulsory school age.
  • Many families are also eligible for an additional 15 hours per week.

Choosing the right scheme for childcare can be daunting. An adviser will be able to help you compare all options so you can choose which scheme works for your family and saves you the most money.

Follow us on for regular financial and mortgage updates

Twitter                     LinkedIn

If you found this article interesting, why not share it?

Meet the Advisers

With over 20 years experience our advisors can help you meet your business and personal goals.

Who we Help

All our clients are doctors and dentists, just like you. As specialists we know your industry inside out.

Info & News

Make this the place you visit to keep up to speed with financial news for your sector.

Contact Us

Wherever you are in the UK we can help you build and protect your wealth.

Get Connected

to our specialist team

Tel: 01403 780 770

Keep Updated

Simply register your name and email below and receive our updates direct to your inbox

Dental & Medical Financial Services News Updates

Just for doctors and dentists

Read more news


Dental and Medical Financial Services is an appointed representative of Best Practice IFA Group Limited, which is authorised and regulated by the Financial Conduct Authority. Company registered in England no. 9158580 Registered office: 1 Market Square, Horsham, West Sussex, RH12 1EU

© 2014 Dental & medical Financial Services. All rights reserved. Website design by Goldmine Media.