The new Tax-Free Childcare scheme for working families with children under 12, providing up to £2,000 a year for each child to help with childcare costs, will begin on 28 April but parents can pre-register now.

Parents will pay into an online fund which the government will top up by 25% up to a cap of £2,000 per child per year, or £4,000 for disabled children. The fund will then be used to pay for eligible childcare. It will initially apply only to children under 2, but then be extended to 3 and 4 year olds and by the end of 2017 to all children under 12 (17 if disabled). This scheme will in due course replace childcare vouchers and employer provided childcare. The interaction with these schemes and with the childcare elements of tax credits and universal credits is complex and careful analysis of which is the most favourable is needed.

source sayervincent 13.04.17