Commentary

E1.717 Tax-free childcare—the childcare account

Personal and employment tax

E1.717 Tax-free childcare—the childcare account

E1.717 Tax-free childcare—the childcare account

Childcare accounts are run by HMRC in conjunction with National Savings and Investment. Fees may be charged but not for the basic functions of setting up the account, receiving qualifying payments and paying for childcare1.

Opening the account

A childcare account is opened by electronic application to HMRC in a form specified by HMRC. It must be accompanied by a valid declaration of eligibility. It must be in respect of a qualifying child and there must be no other active account in respect of that child. HMRC has the power to decide between any competing claims and to restrict the operation of an account if they deem it necessary2. HMRC can make an account restriction order where a person other than the person who already holds a childcare account, seeks to apply for free

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