Childcare: Tax Allowances

The Government is committed to supporting veterans and their families access financial support available to them such as Tax- Free Childcare. Tax-Free Childcare aims to support working parents with the cost of childcare, including veterans, to work, return to work and work more when they want or need to.

To be eligible, a parent and their partner (if they have one) must expect to earn at least the National Minimum or National Living wage for 16 hours a week on average and each earn no more than £100,000 per year. A parent may still be eligible if they are not currently working but their partner is and they are in receipt of Incapacity Benefit, or Severe Disablement Allowance, or Carer’s Allowance or Contribution-based Employment and Support Allowance.

HMRC promotes Tax-Free Childcare through a range of channels including GOV.UK and the Childcare Choices website. More information on the scheme is also available on the British Army’s website, through targeted campaigns to childcare providers/parents and by the service charity sector such as Help for Heroes listed in the MoD’s Service Leavers’ Guide. These efforts ensure veterans are signposted to the childcare support available to them after military service.