Childcare providers to open tax-free childcare account

HMRC has issued guidance on how childcare providers can open an account to receive payments from parents through the tax-free childcare scheme

Approved or registered childcare providers can sign up to get a childcare provider account which allows them to set up bank account details and receive payments from parents who use tax-free childcare.

Those signing up must be the main contact for the business however it is possible to set up a delegate to manage the account on the main contact’s behalf.

To sign up, childcare providers will need:

  • an 11-digit user ID;
  • bank account details;
  • 10-digit Unique Taxpayer Reference (UTR), if they are registered for self assessment or corporation tax; and
  • national insurance number, if they are directly employed.

Schools ran by local authorities should contact their finance team to obtain their UTR and postcode, which will enable them to sign up.

It takes approximately 10 minutes to sign up for an account.

After signing up to tax-free childcare, providers can still accept payments from parents using childcare vouchers and other methods.

Childcare providers can sign up to an account here. 

Report by Amy Austin

Amy Austin |Reporter, Accountancy Daily [2016-2019]

Amy Austin was reporter, Accountancy Daily and Accountancy magazine, published by ...

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