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How to accept tax-free childcare and childcare vouchers as a provider

If you run an activity or childcare provision, registering to accept government childcare funding is one of the most effective ways to improve accessibility. Families using these schemes have a budget set aside specifically for childcare, and if you're set up to accept it, you become an easier choice.

In this guide, we explain the three main schemes and what you need to do to accept each one.

Written by Sarah Fowler
Featured image for blog post: How to accept tax-free childcare and childcare vouchers as a provider

First: you need to register with Ofsted

For most providers, accepting government childcare funding starts with Ofsted registration. Families can usually only use Tax-Free Childcare, childcare vouchers, or Universal Credit childcare support with providers who are Ofsted registered, or registered through an approved equivalent route.

Whilst some activity providers are exempt from needing Ofsted registration, many still choose to register so families can use these schemes with them.

The registration you need depends on the ages of children you work with:

  • Voluntary Childcare Register — commonly used by providers working with children aged 8 and over, and by some exempt childcare providers who choose voluntary registration so families can access Tax-Free Childcare and Universal Credit support
  • Compulsory Childcare Register — required if you work with children from 1 September after their fifth birthday up to their eighth birthday, for two or more hours a day, more than five days a year
  • Early Years Register — required if you care for children under 5

To register with Ofsted:

  1. Go to the Early Years Register or Childcare Register website and create an account
  2. Fill in the online application — it covers your setting, the ages of children you work with, and your safeguarding policies
  3. Pay the registration fee — fees vary depending on provider type and register, so check the current Ofsted fees before applying
  4. Ofsted will carry out checks and may visit your setting — this can take several weeks to several months depending on your registration type

Before you apply, you'll need:

  • An enhanced DBS check for you and any staff working with children
  • Appropriate first aid cover (and paediatric first aid where required for Early Years provision)
  • Public liability insurance
  • A written safeguarding policy
  • A complaints procedure

What if you work with multiple age groups?

Many activity providers work with children across a wide age range. Take a holiday camp running sessions for children aged 4 to 10. That actually spans all three registers:

  • Age 4 (under 5) = Early Years Register
  • Ages 5–7 = Compulsory part of the Childcare Register
  • Ages 8–10 = Voluntary part of the Childcare Register

Ofsted makes this straightforward: if you register on the Early Years Register, you can also join the Childcare Register at no extra cost, either at the same time or afterwards. If you're already on the Childcare Register only and want to add the Early Years Register later, you'll need to apply separately and pay an additional fee.

⭐ Eequ Pro Tip: Apply for Ofsted registration as early as you can. The wait varies from a few weeks to a few months, and catches a lot of providers off guard.

Once you have your Ofsted registration number, you're ready to sign up for the schemes below.

Scheme 1: Tax-Free Childcare

What it is

Parents open an online account. For every £8 they put in, the government adds £2 — up to £2,000 per child per year (or £4,000 for a disabled child). They then use this account to pay providers directly.

For many providers, this is the scheme families ask about most. It's open to most working parents with children under 12, and uptake has grown significantly in recent years.

How to register

  1. Go to GOV.UK and sign in with a Government Gateway account (or create one)
  2. Enter your Ofsted registration number
  3. Add your bank account details — this is where payments will land
  4. You'll receive a provider reference number — this is what parents need to pay you

Registration is free and usually takes just a few days.

⭐ Eequ Pro Tip: Put your provider reference number on your invoices and booking forms. Without it, parents can't pay you from their account. Eequ has a dedicated childcare scheme setup built into the system, so parents can select "pay by childcare scheme" during the booking flow.

Scheme 2: Childcare Vouchers (legacy scheme)

What it is

This scheme closed to new parents in October 2018, but many are still using vouchers built up through their employer. If a parent mentions vouchers, don't turn them away — you can still accept them.

There's no central place to register. Vouchers are managed by private companies, and you register with each one separately.

How to register

  1. Ask the parent which company manages their vouchers — common ones include Edenred, Busy Bees Benefits, and Computershare
  2. Go to that company's website and find their provider registration page
  3. Provide your Ofsted number, business details and bank account

⭐ Eequ Pro Tip: Keep a note of which voucher companies you're registered with and add this to your booking system or website so parents know upfront.

Scheme 3: Universal Credit childcare element

What it is

Families on Universal Credit can claim back up to 85% of their registered childcare costs. Parents pay you as normal, then claim the money back through their Universal Credit account.

You don't need to register separately for this one. As long as your Ofsted registration is up to date, families can use this scheme with you.

What you need to do

  • Make sure your Ofsted registration is current
  • Issue clear, itemised receipts or invoices — parents need these to submit their Universal Credit claim. On Eequ, bookers can simply submit their booking information without any further action from you

Common questions

How long does Ofsted registration take? Ofsted aims for around 12 weeks, but the Early Years Register can take much longer, sometimes up to six months. It's usually quicker if you're only joining the Childcare Register, but that's not guaranteed either. Apply as early as you possibly can as this is the step that holds most providers up.

Can a holiday camp or sports club register? Yes. You don't need to be a nursery or school. Most activity providers qualify for at least the Voluntary Childcare Register.

Does it cost anything to register for Tax-Free Childcare? No. Registering as a provider is free. You just need to become Ofsted registered (or equivalent) first.

A parent wants to pay by voucher but I'm not registered with their provider. What do I do? Contact that voucher company and register. It's usually quick and straightforward.

How Childcare Payments Work on Eequ

Using Eequ you can accept and track Childcare Payments. See the image below to understand the process from booking to reconciling the payment.

Ready to start accepting childcare payments?

Once you're registered with Ofsted and signed up to the schemes above, Eequ makes it simple to accept childcare payments as part of your normal booking flow. Parents can select their payment scheme at checkout and pay you later, with minimal extra admin for you.

If you run a club, class or activity session, set up your Eequ account here.

If you run wraparound childcare such as breakfast clubs or after-school provision, find out how Eequ works for you here.

Accurate as of April 2026. Government policy can change, so always check GOV.UK for the latest guidance.