Tax-Free Childcare - Nanny Guide
Tax-Free Childcare is being rolled out gradually from 28th April 2017 and registered/approved childcare providers need to have signed up BEFORE parents can use Tax-Free Childcare to pay your salary. Tax-Free Childcare will have a large financial impact on the family that you work for so this is an important process to work through.
When applying for new roles, this will be a bonus for any family potentially considering employing you and may give you a head start over other candidates that they are considering.
This is a guide to help you to sign-up with the Tax-Free Childcare scheme.
Do You Have A User ID?
You must be registered with the childcare regulator (in England this is called Ofsted) before signing up with Tax-Free Childcare ‘and’ have a Tax-Free Childcare user ID. Your user ID will have been posted as a letter to the work address known by the childcare regulator. These addresses can be quite out of date so if you have changed job, you must make sure that the regulator has your correct work address (referred to as your setting address). If you did not get your letter (perhaps as it went to an old work address), update your details then call the helpline on 0300 123 4097 and they will send it to the work address the regulator has on file.
Tax-Free Childcare has an easy to use online sign-up system. https://childcare-support.tax.service.gov.uk/.
What do you want to do today?
Select: ‘I want to sign up’.
Enter your user ID and postcode.
Enter the ‘user ID’ and ‘postcode’ as it is shown on your invitation letter. Your business postcode is your work location.
The system will lookup your details and ask you to confirm that they are correct.
Do you have a Unique Taxpayer Reference?
As a nanny you will not have a taxpayer reference unless you have previously or are currently also running your own business.
Most nannies will select ‘No’.
Your National Insurance number.
Enter your National Insurance number.
Enter your business bank details.
You do not need a business bank account.
Enter the bank account details for where you wish to be paid by your employer. This will typically be your bank current account.
Leave the ‘Roll Number’ field empty unless you bank with a building society and have a roll number.
Check your bank details are correct otherwise someone else will get your pay!
Do you want to nominate a delegate?
A delegate is someone to assist you with using the online system. You should select ‘No’.
If you are visually impaired and need assistance then you may have someone assisting you.
Set up your password.
Your password must be 8 to 20 characters and contain at least one number, one lower-case and one upper-case letter.
Keep your password safe.
The system will now take you through a process of setting security questions. When you login or phone the helpline, you will be asked for various details from your security questions to confirm that you are authorised to access your account.
Enter a telephone number.
Tax-Free Childcare may need to contact you if they require further information or to carry out a security check. It would be advisable to enter two phone numbers so you can be contacted at work or at home, such as a mobile number and a landline.
Your application will now be verified and your account created.
How Payment Works
Parents have one Tax-Free Childcare account per child. When a parent pays you, they will transfer payment to their Tax-Free Childcare Account and within three to four days your net pay will arrive in your nominated bank account. If they have more than one child you may receive several payments, this is absolutely normal. Each payment will have a reference to help you to identify for which child the payment relates.
Parents may not be aware that there is a delay from when they transfer the money into their Tax-Free Childcare account and when you receive that money, so it may be helpful for you to let them know if your payments arrive late.
Useful Websites and Phone Numbers
- Tax-Free Childcare login: https://childcare-support.tax.service.gov.uk/
- Tax-Free Childcare helpline: 0300 123 4097
- Childcare Choices – Government micro-site providing information to parents about various childcare schemes: https://www.childcarechoices.gov.uk/
- Childcare Calculator – A calculator to help parents determine which childcare scheme is best given their personal circumstances: https://www.gov.uk/childcare-calculator