Advice for Providers

The subsidy can be offered by all registered childcare providers and schools that are signed up to the HMRC Tax-Free Childcare scheme. This includes daycares, playgroups, childminders, approved home childcare, out-of-schools settings, primary schools and special schools. It does not apply to unregistered or informal childcare arrangements.

Guidance from HMRC confirms that, in addition to childcare, supervised activities delivered outside compulsory education, such as breakfast clubs, after-school activities and holiday schemes, may qualify for Tax-Free Childcare.

These activities will also qualify for NICSS, subject to registration.

In Northern Ireland, supervised leisure, recreational or enrichment activities delivered in schools may be exempt from Health and Social Care Trust registration, provided they:

• Are enrichment-focused and linked to the curriculum;
• Are delivered under school oversight, including third-party delivery;
• Are not promoted as general childcare; and
• Are only available to pupils enrolled at the school.

Therefore, if your school runs supervised activities such as breakfast clubs or after-school programmes, rather than general childcare, you may be able to register for Tax-Free Childcare without registering with your local Health and Social Care Trust.

Yes. The maximum amount that can be claimed under the subsidy scheme is £203 per child, per month.

A child with a disability may be able to claim up to £4,872 annually under NICSS. This means that the monthly cap will be £406 for this child rather than £203.

Evidence must be provided to confirm that the child is eligible for the higher Tax-Free Childcare rate.

When a parent pays you using their childcare account, the transaction will appear on your bank statement as NATIONAL SAVINGS AND INVESTMENTS . The entry should also contain the child’s:

• Childcare reference number, made up of four letters and five numbers. The letters are the first initial and first three letters of the child’s surname. For example, AJON12345.
• Tax-Free Childcare account number. This will be 13 digits long, start with 1100 and should contain the letters TFC. For example, TFC 1100012345678.

If your bank displays payment information differently and you are unable to identify a parent’s payment, you can submit a payment reconciliation form or call the Childcare Service Helpline on tel:030012340970300 123 4097.

Yes. Childminders receiving Childcare Subsidy Scheme payments who also receive Universal Credit must declare these payments as income in every Universal Credit assessment period in which they are paid.

They can report this income using their Universal Credit online account or by phoning the Universal Credit Service Centre.

Universal Credit customers working as self-employed registered childminders will need to declare both the upfront and monthly administration payments as income in the assessment period during which they were received.

Both the upfront and ongoing monthly administration payments are also an allowable expense under Universal Credit. The full amounts of these payments should therefore be declared as both income and expenses in the same assessment period during which the payments were received.

NICSS subsidy payments made to childcare providers for childcare provided are not an allowable expense and must only be declared as income.

Yes.

No. A refundable deposit is not covered under NICSS. A deposit line can appear on an invoice, but the subsidy cannot be applied to the deposit amount.

A process will be in place for you to amend a claim if the anticipated level of childcare has not been provided.

Where possible, a refund will not be required. Instead, an adjustment will be made to subsequent claims.

Yes. The scheme aims to reduce parental childcare bills, so pre-established holiday payment commitments are eligible under the scheme.

NICSS will provide a 15% subsidy on all childcare costs that are normally covered by Tax-Free Childcare.

Please apply the 15% discount to the fee you normally charge the parents. This means applying it to the amount remaining after the sibling discount has been applied.

Yes. However, for children eligible for NICSS, the invoice must clearly state:

• Name of the child;
• Tax-Free Childcare number;
• Amount before the reduction;
• 15% reduction amount; and
• New amount payable by the parents.

A process is available for parents who are digitally exempt. Early Years can allocate them a Tax-Free Childcare reference number that can be tracked on the NICSS system.

They will still need to register through the portal. Please ask the parent or carer to contact nicssparent@early-years.org so the team can allocate a reference number that can be used to complete their registration.

Parents will be required to update their expiry date as part of a review process conducted by Early Years every three months.

If a parent fails to update their eligibility, their application will expire and you will receive a notification advising that the parent should no longer receive the NICSS discount.

The parent or carer is responsible for informing you if they are no longer eligible for Tax-Free Childcare.

If the parent or carer has contacted you, you should close the Child Application and stop providing the NICSS discount.

Fees will not be made visible to parents. When instructed by Early Years, providers should confirm their fees through the portal. This will be requested twice per year.

The data requested will be used to process claims, monitor scheme activity and assess its impact.

NICSS is the first step in delivering a comprehensive Early Learning and Childcare Strategy for Northern Ireland.

Data collected as part of the scheme will be aggregated and used for statistical purposes to inform the future development of NICSS and this wider work.