​Tax-Free Childcare for Holiday Camps: The 2026 Providers Guide

If you run a holiday camp, you've probably either already set up tax free childcare (TFC) and spend more time managing it than you'd like, or you've been meaning to look into it properly.

For many providers, accepting the tax-free childcare scheme isn't the challenge, it's managing the payments. Reconciling incoming childcare account payments with bookings, chasing outstanding balances, and updating spreadsheets can quickly become a time-consuming administrative task, particularly during busy holiday periods.

This guide explains everything holiday camp providers need to know about accepting tax free childcare payments, including eligibility requirements, how the payment process works, common reconciliation challenges, and how many providers are reducing admin by automating the process.

Are holiday camps eligible for tax free childcare?

Yes, but with a specific requirement: to be an accredited holiday club you must be registered with with appropriate regulator for your area. In this article we reference the Ofsted and HMRC regulatory body.

Ofsted registration: Your setting must be on the Ofsted Childcare Register (voluntary or compulsory part) or listed as an approved provider on the Government's scheme. The type of registration matters, check your registration letter to confirm you're on the register that qualifies. See

Parent eligibility: Parents must each be working and earning at least the National Living Wage for 16 hours a week (with some exceptions). Parents cannot use TFC if either partner is claiming Tax Credits or Universal Credit childcare payment, they must choose one scheme, not both. Parents can check their TFC scheme eligibility here.

How to register as a TFC provider

​If your holiday camp or wraparound care is not Ofsted registered already, start here. If your school aged childcare is Ofsted registered but not yet set up to receive TFC payments, the process is straightforward:

Sign in to your HMRC online services account using your Government Gateway credentials. If you don't have one, you'll need to create one — the process takes 10–15 minutes.

Navigate to the Childcare Service section and select "Register to accept Tax-Free Childcare payments."

Enter your details — including your Ofsted registration number, business bank account details, and the type of provision you offer.

Receive your provider reference number — a unique code you'll give to parents so they can make payments to your setting specifically.

Once set up, tell every parent you work with about your TFC eligibility. Many parents who use TFC for nursery or wraparound care don't realise their holiday club is also eligible. A simple note in your booking confirmation, "We accept TFC payments for holidays too! Your provider reference is [XXXXX]" this removes the lack of awareness and can materially increase conversions for families who would otherwise hesitate over cost.

How TFC payments work

Understanding how the payment process works helps explain why reconciliation can become such an administrative challenge.

When a parent pays with tax free childcare:

They log into their Government Childcare Account.

They select your setting using your provider reference number.

They make their payment.

HMRC adds the Government contribution before releasing the funds to your business bank account.

Payments usually arrive within a few working days.

The payment reference challenge

Although the money arrives via bank transfer, the payment reference isn't always consistent.

For example, you might receive references such as:

J SMITH – TFC

TAX FREE CHILDCARE – JONES

CHILDCARE ACCT – SARAH M

If you have multiple families with the same surname, or if the account holder has a different surname from the child matching payments manually often means checking booking records, payment amounts and registration details one by one.

Across dozens of families, that quickly becomes a significant administrative burden.

Why payment reconciliation becomes a challenge

Reconciling TFC payments can feel manageable when only a handful of families use the scheme.

However, as your setting enrolments grows and more families use the scheme, so does the workload. This is particularly true if you're running both holiday camps and wraparound care, where multiple bookings and payment methods overlap.

When a payment can't be matched immediately, staff often need to:

contact parents

confirm payment details

manually update booking records

monitor outstanding balances

The busiest period, just before camp starts is often when providers have the least time available for these tasks.

How Enrolmy camp administrators simplify TFC administration

The accredited holiday camp providers on Enrolmy reduce this workload by utilising the software’s built-in tax free childcare reconciliation workflow.

In practice, that means:

Parents declare they'll be using TFC during Enrolmy’s booking process

Payment expectations are recorded from the outset, reducing confusion later.

Enrolmy matches the parent payment and TFC payment in the system

Instead of relying solely on payment references, bookings can be matched using registered payer information and expected payment amounts.

Outstanding balances are visible immediately

Rather than cross referencing spreadsheets and bank statements, providers can see exactly what's been paid and what's still outstanding from one screen.

Booking systems such as Enrolmy are designed to support this workflow, helping providers spend less time reconciling payments and more time preparing for camp.

​ See how TFC reconciliation works inside Enrolmy, book a free 15-minute demo and we'll walk you through a live booking scenario asap.

TFC alongside other payment types

Most UK holiday camp families don't pay entirely through one method. A typical family might pay the TFC-eligible portion through their Government Childcare Account and cover any balance by card or bank transfer. Some families still use Childcare Vouchers through the closed scheme. Although the scheme closed to new applicants in October 2018, existing members can continue using vouchers while they remain eligible.

The practical challenge for providers is that each payment type arrives differently:

TFC: BACS from HMRC, 3–5 days after parent initiates it, with a reference you'll need to match

Childcare Vouchers: Paid through voucher providers such as Edenred or Bright Horizons, usually requiring a separate provider portal and statement reconciliation

Card payments: Instant, attached to the booking if processed through your booking system

BACS transfers: Bank-to-bank, arrives with whatever reference the parent used

Managing all four in a single booking system, where every payment method is recorded against the same booking record, is significantly easier than maintaining parallel tracking across a bank account, a voucher portal, a spreadsheet, and a booking form.

Many providers find that managing all payment types within a single booking system significantly reduces administrative work, particularly during peak booking periods.

Frequently Asked Questions

Can parents use tax free childcare for both wraparound care and holiday camps?

Yes. Tax-Free Childcare (TFC) is the Government scheme (gov.uk) that helps working parents in England, Scotland, Wales, and Northern Ireland pay for registered childcare.

Eligible families then pay for childcare directly from their account, and holiday camp or wraparound care operators receive the full amount, including the top-up, as a payment into their bank account. There's no voucher code to redeem, no card to process. The money simply arrives.

The annual tax free childcare allowance can be used across multiple eligible childcare providers. Parents can split payments between wraparound care, holiday camps and other registered childcare settings.

Can any holiday camp accept tax free childcare?

No.

Only providers registered with the relevant childcare regulator can accept TFC payments.

If you're not yet registered, it's worth applying well before your next holiday programme, as registration can take several weeks depending on your circumstances. Start Ofsted registration process now.

What happens if a parent uses the wrong payment reference?

The payment will usually still reach your account, but matching it to the correct booking may require manual checks.

Making your provider reference number clearly visible in booking confirmations and payment reminders helps reduce these issues.

Do parents have to pay the full booking through tax free childcare?

No.

Parents can choose to pay all or part of a booking using Tax-Free Childcare and pay any remaining balance using another payment method.

Many providers regularly receive mixed payments for the same booking.

Final thoughts

For many holiday camp providers, accepting TFC isn't the difficult part anymore, keeping track of every payment is. As more families choose to pay through the scheme, having a booking system that automatically records payments, tracks balances and reduces manual reconciliation can save hours of administration each season.

If you'd like to see how Enrolmy manages TFC alongside card payments, bank transfers and Childcare Vouchers, book a free demo with the team and see the full booking journey in action.