Getting set up to accept Tax-Free Childcare

Before you start

This guide is for kids club providers in England. Scotland, Wales and Northern Ireland work differently — ask usif that’s you. It is guidance, not legal advice; always confirm details against the linked GOV.UK pages, as fees and rules change.

The short version:parents can only pay you from a Tax-Free Childcare (TFC) or childcare voucher account if you’re registered with Ofsted. Most holiday clubs and activity providers don’t need full Ofsted registration — the voluntary part of the Childcare Register is the lightweight route, and it’s what unlocks TFC. Registration takes roughly 12 weeks, so start well before the holiday season you want it for.

Stage 0 — Work out your starting position (30 minutes)

• Already registered? Search your business on the Ofsted register (reports.ofsted.gov.uk). If you appear, note your URN and skip to Stage 3.
• Check whether you’re required to register anyway.If you’re paid to care for children aged 5–7 for more than 2 hours a day (typical for holiday clubs taking that age group), you may need the compulsorypart of the Childcare Register, not just the voluntary part. If you take under-5s beyond limited activity provision, the Early Years Register may apply. If either might be you, read GOV.UK’s “different types of childcare provider” guidance before applying — the voluntary-only route is for over-8s care and exempt activity provision.
• Confirm you fit the voluntary route (if not caught above). Broadly: you care only for children aged 8+, or you run activity-based provision (coaching or tuition in one or two activities — sport, drama, music, etc.) for children aged 3+, with under-5s attending no more than 4 hours a day. Care must run for more than 2 hours a day to be registrable (exception: childcare immediately before or after school — wraparound providers, check the CR1 guidance).
• Decide if it’s worth it. Registration matters if parents spend meaningfully with you — holiday camps, wraparound care, multi-day provision. For a £6 weekly session it rarely pays its way. Rough test: would a typical family spend £100+ per holiday with you? If yes, register. Weigh it against the annual Ofsted fee (currently £114/year — same fee for either or both parts, non-refundable): one or two TFC-paying families cover it in government top-up value alone.

Stage 1 — Get your prerequisites in place (2–6 weeks, mostly waiting on DBS)

Everything here is checked at application or inspection, and most of it you should have anyway:

• Enhanced DBS checks for everyone with unsupervised access to children — including you as the applicant/nominated individual. Sign each person up to the DBS Update Service (small annual fee) so checks stay portable. Allow 2–4 weeks per check.
• First aid: at least one person caring for the children holds an appropriate first aid certificate. Paediatric first aid is the safe choice for this sector.
• Common core skills training:at least one staff member has training covering the common core skills and knowledge for the children’s workforce (short online courses exist).
• Public liability insurancein place — you’ll declare it on the application.
• Premises: at least one venue suitable for childcare at the point you apply. Rented halls and schools are fine; have the arrangement documented.
• Written basics: safeguarding policy, complaints procedure, and record-keeping for accidents, medication, and attendance. Kimshi covers the registers, medical/consent records, and staff records — export or show these at inspection.

Stage 2 — Apply to the Childcare Register (allow ~12 weeks for Ofsted)

• Apply online via GOV.UK: “Apply to join the Childcare Register (CR1)”. The application must come from the sole owner or the organisation’s nominated individual. You can apply to the compulsory and voluntary parts in one application if you need both.
• Pay the application fee (annual, currently £114 — see Stage 0).
• Ofsted may ask for more evidence; respond quickly. There’s no pre-registration inspection for the voluntary part, but you can be inspected at random (or on complaint) once registered.
• On approval you’ll receive a certificate and URN. Display the certificate at your premises.
• Diary the annual fee renewaland the ongoing requirements — they apply for as long as you’re registered.

Stage 3 — Sign up with HMRC to receive TFC payments (under an hour)

• After registration, HMRC sends an invitation letter with a user IDto sign up as a childcare provider. If it doesn’t arrive within a few weeks of registering, chase via the childcare provider helpline.
• Sign up on GOV.UK (“sign up to Tax-Free Childcare if you’re a childcare provider”) using the user ID, your URN, and your business bank account details— this is the account parents’ TFC money will arrive in, so use the same account you’ll enter into Kimshi.
• Once signed up, parents can find you in their HMRC childcare account and pay you. Note: they’ll see your registered name, which may not match your trading name or Kimshi site name — if they differ, tell parents exactly what to search for (put it in your booking confirmation text). Payments arrive as bank transfers with a reference like JSMI12345TFC(child’s initial + 3 letters of surname + 5 digits + TFC).
• If you also want to accept legacy childcare vouchers (Edenred, Sodexo, etc.), register with each voucher provider separately — each has its own short process and pays by bank transfer with its own reference style.

Stage 4 — Switch it on in Kimshi (30 minutes, with us)

• Have the Offline Paymentsfeature included in your Kimshi package — it’s part of onboarding, just ask us.
• In Admin → Payments → Settings: enter your bank details (the same account registered with HMRC) and your HMRC registered name — exactly as parents see it in their childcare account, which may differ from your trading name — tick the registration confirmation, and choose which payment methods you offer.
• Tick “Accept offline payments” on the sessions you want it on — typically your holiday camp sessions or templates. Drop-ins can stay card-only; nothing is switched on anywhere until you tick it.
• Set your payment window and what happens if payment doesn’t arrive.
• List your accepted voucher schemes.
• Test-book as a parent and check the confirmation email reads correctly.
• Learn the Payments to match screen: when transfers land in your bank, record them (or paste your statement) and confirm the suggested matches — receipts go out automatically.
• Tell parents.Add “Ofsted registered — Tax-Free Childcare accepted” to your website and booking pages, with your URN. Parents actively search for this; it’s a selling point, not small print. Working parents can get up to £2,000 per child per year from the government toward your fees (£4,000 for a disabled child) — say so.

Key links (verify details here — this guide may age)

• Apply: gov.uk/guidance/apply-to-join-the-childcare-register-cr1
• Ongoing requirements (daycare, voluntary part): gov.uk/guidance/daycare-providers-on-the-voluntary-childcare-register-ofsted-requirements
• TFC provider sign-up: GOV.UK — “sign up to Tax-Free Childcare if you’re a childcare provider”
• Check a registration: reports.ofsted.gov.uk