tax - free chidlren | Littlemonkeys

Tax - free childcare guide for parents.
The UK - wide scheme that gives you an automatic 20% top- up on your nursery fees.

Managed by HMRC, this scheme is a government initiative designed to help working parents with the cost of childcare. You can use it to pay for approved childcare. For every £8 you pay into your online account, the government automatically adds £2. This gives you up to £2,000 per child, per year (capped at £500 every three months). If your child is disabled, the maximum top-up increases to £4,000 per year.
Are You Eligible?
The government uses a 3-month forecasting window to check your eligibility. To open an account, you (and your partner, if you have one) must meet certain criteria:

Work & Zero Hours

You must expect to earn at least the equivalent of 16 hours a week at National Minimum/Living Wage over the next 3 months. If you are on a zero-hours contract, you can still qualify if your fluctuating earnings average out to meet this threshold across the 3-month period.
Income Ceiling

Neither parent can have an adjusted net income of over £100,000 in the current tax year. This calculation includes any worldwide income you may receive.
Maternity & Leave

You count as “working” while on sick leave or parental leave (such as maternity, paternity, or adoption leave). However, for the specific child you are currently on leave for, you can only set up the account up to 31 days before you return to work.

Combining with Funded Hours -

Yes, you can use both! While the government funds your 15 or 30 hours, these hours do not cover the cost of consumables (meals, snacks, extra-curriculars) or extra wrap-around care. Tax-Free Childcare acts as the perfect savings bridge to pay for these remaining fees at a 20% discount.

How to Pay Kids Planet using Tax-Free Childcare

Setting up the payment is easy, but you must manually send the funds from your Gov.uk account to your specific nursery. Once set up, you can manage your account online, check balances, and make your payments directly.

⚠️ The 3-Month Reconfirmation Rule

You must log in and reconfirm your details every 3 months on your GOV.UK account to keep receiving the 20% top-up. The government will send you a reminder, but we recommend setting an alarm on your phone so your payments aren’t delayed.

Note: Different childcare funding schemes exist in Scotland, Wales, and Northern Ireland.

Tax - free childcare guide for parents. The UK - wide scheme that gives you an automatic 20% top- up on your nursery fees.

Tax - free childcare guide for parents.
The UK - wide scheme that gives you an automatic 20% top- up on your nursery fees.