Tax-Free Childcare Account
Learn how to open, fund and manage a Tax-Free Childcare account, estimate the government top-up and understand provider payments, quarterly limits, reconfirmation deadlines, refunds and common account problems.
Calculate Your Top-UpCalculate Your Top-Up
Enter your childcare payments to estimate how much the government could add to your Tax-Free Childcare account.
Start CalculatorManage Your Account
Understand how to pay money in, add a childcare provider, approve payments and keep track of your balance.
Account InstructionsReconfirm On Time
Learn why eligibility must usually be reconfirmed every three months and what can happen if the deadline is missed.
Check ReconfirmationTax-Free Childcare Account Calculator
Enter the amount you plan to pay into the account and calculate the estimated government top-up, available childcare balance and remaining quarterly or annual allowance.
Your Account Payment Details
For every £8 an eligible parent pays into a Tax-Free Childcare account, the government normally adds £2, subject to the child’s quarterly and annual top-up limits.
Your Account Estimate Will Appear Here
Enter your planned deposit, existing balance and top-up already received to estimate the amount available for childcare payments.
Your Tax-Free Childcare Account Estimate
Tax-Free Childcare Account At A Glance
The online account combines your payments with a government top-up and is then used to pay approved childcare providers.
Explore Tax-Free Childcare Support
Review eligibility, calculate top-ups and compare Tax-Free Childcare with other childcare support before opening or changing an account.
What Is A Tax-Free Childcare Account?
A Tax-Free Childcare account is an online account used to pay an approved childcare provider. An eligible parent adds money to the account, the government adds a top-up and the combined balance is sent to the selected provider.
The account is not a reimbursement paid into a personal bank account and it is not a reduction applied automatically to the nursery invoice. Parents must deposit enough money, select the provider and arrange the childcare payment through the online service.
- Create a separate childcare account for each eligible child.
- Add an approved provider through the online service.
- Pay money into the account before the provider’s deadline.
- Allow time for bank transfers and provider processing.
- Reconfirm eligibility every three months.
- Keep provider references and account records organised.
How A Tax-Free Childcare Account Works
Once an application is approved, a childcare account is opened for each eligible child. Parents, another person or an employer can pay money into the account, and qualifying payments receive the government top-up.
The £8 Plus £2 Top-Up
For every £8 paid into the account, the government adds £2. A parent payment of £800 can therefore create a combined childcare balance of £1,000, provided the child has enough top-up allowance remaining.
The government payment is 25% of the parent deposit. Once the parent contribution and government contribution are combined, the government amount represents 20% of the full childcare payment.
| Parent Deposit | Government Top-Up | Total Available For Childcare |
|---|---|---|
| £80 | £20 | £100 |
| £400 | £100 | £500 |
| £800 | £200 | £1,000 |
| £1,200 | £300 | £1,500 |
| £2,000 | £500 | £2,500 |
Quarterly Top-Up Limits
The standard maximum government top-up is £500 for each child in every three-month entitlement period. This means a parent can receive the maximum standard quarterly top-up by paying £2,000 into the account during that period.
For an eligible disabled child, the maximum government top-up is £1,000 in each entitlement period. A parent payment of £4,000 would be required to receive the full £1,000 quarterly top-up.
Annual Top-Up Limits
The standard annual maximum is £2,000 for each eligible child. For an eligible disabled child, the annual maximum is £4,000.
The account can still hold more money than the amount that receives an immediate top-up. Where a parent deposits more than the amount eligible for the current entitlement period, the treatment of the excess depends on account and entitlement rules.
How To Open A Tax-Free Childcare Account
Parents apply online through the government childcare service. There is one application process for Tax-Free Childcare and Free Childcare for Working Parents, so the service may assess eligibility for both forms of support.
Information You May Need
The application may require information about the parent, partner, child, employment, self-employment, expected income and immigration status. Both partners normally need National Insurance numbers.
- Your National Insurance number.
- Your partner’s National Insurance number where applicable.
- Your child’s details and date of birth.
- Employment or self-employment information.
- Expected earnings for the relevant period.
- Details of existing childcare support.
- Immigration or access-to-public-funds information if relevant.
Separate Accounts For Each Child
Tax-Free Childcare is managed through an individual childcare account for each eligible child. Payments, government top-ups and annual limits are tracked separately for each account.
Only One Account Holder For The Same Child
Parents cannot both maintain separate Tax-Free Childcare accounts for the same child. Separated parents who are jointly responsible should decide who will apply and manage the account.
When To Apply
A parent can normally apply at any time, but special timing rules may apply when starting work, returning to work or taking maternity, paternity, adoption or shared parental leave.
Application Decision
Some applicants receive an immediate decision, while additional checks may take longer. Do not rely on the account for a provider payment until access and eligibility have been confirmed.
How To Use A Tax-Free Childcare Account
After signing in, parents can add money, search for approved childcare providers, make provider payments and apply for another child.
Find And Add Your Provider
Search for the childcare provider using information such as its name, address, postcode or regulator reference. The provider must be approved and signed up to receive Tax-Free Childcare payments.
If the provider is registered but does not appear in the account, ask whether it has completed the Tax-Free Childcare sign-up process. The online service may allow the parent to send a prompt encouraging the provider to register.
Pay Money Into The Account
Parents can transfer money into the account using the payment instructions shown in the online service. Other people, including family members or an employer, may also be able to contribute.
Wait For The Top-Up
The government top-up is added to qualifying deposits, subject to account limits. Do not send a provider payment until the account shows enough available balance.
Pay The Childcare Provider
Select the provider, enter the amount and make the payment through the childcare account. Keep the payment confirmation and compare it with the provider’s invoice.
Allow Time For The Provider To Receive The Money
Payment timing can depend on the amount, bank processing and the provider’s account. Payments of up to £2,000 can normally appear in the provider’s bank account within 24 hours, depending on the bank. Larger payments may take three to five working days.
Use The Correct Child Account
Where a family has more than one eligible child, select the correct child’s account before paying the provider. Each child has a separate balance and top-up allowance.
Check The Provider Reference
Tax-Free Childcare provider payments include a unique child reference. Share the correct reference with the provider so that it can match the bank payment to your child and invoice.
- Sign in to the childcare account.
- Select the correct child.
- Check the provider is added and available.
- Pay the parent contribution into the account.
- Wait for the qualifying top-up to appear.
- Select the provider and enter the payment amount.
- Confirm the transaction.
- Save the payment confirmation.
- Check that the provider has allocated the payment correctly.
Tax-Free Childcare Account Reconfirmation
To continue receiving Tax-Free Childcare, parents normally need to sign in every three months and confirm that their details remain up to date.
What Reconfirmation Checks
The service may ask the parent to confirm information about work, expected income, household circumstances, partner details and the child.
How To Find The Deadline
Sign in to the childcare account to view the next reconfirmation date. HMRC may also send a text or email reminder, but the account holder remains responsible for meeting the deadline.
Reconfirm Each Child
A family with more than one child should check every account and code. Eligibility dates may not be identical, particularly where children were added at different times.
What Happens If The Deadline Is Missed?
The account may stop receiving new government top-ups until eligibility is restored. The effect on money already held in the account depends on the account status and scheme rules.
Report Changes Accurately
Do not wait for the next reconfirmation when a change must be reported sooner. Relevant changes can include employment, income, relationship status, address or responsibility for the child.
Reconfirmation And Working-Parent Hours
The same childcare account may also contain the eligibility code for Free Childcare for Working Parents. Reconfirming on time helps keep the childcare code valid as well as maintaining Tax-Free Childcare eligibility.
Who Can Use A Tax-Free Childcare Account?
Eligibility depends on the child’s age and circumstances, the work and income position of the parent and partner, and immigration or access-to-public-funds conditions.
Child Age
A child is normally eligible until the September after turning 11. An eligible disabled child can normally remain eligible until the September after turning 16.
Work Requirement
The parent and partner usually need to be working or returning to work. Employment and self-employment can count, and certain forms of leave or benefit-related exceptions may apply.
Minimum Expected Earnings
Each working parent normally needs to expect earnings equivalent to at least 16 hours a week at the applicable National Minimum Wage or National Living Wage.
The exact three-month threshold depends on age and apprentice status. Self-employed parents starting a business may receive a startup concession during the first 12 months.
£100,000 Adjusted Net Income Limit
A parent is not normally eligible if either adult expects adjusted net income above £100,000 in the current tax year. The limit applies separately to each adult rather than to combined household income.
Responsibility For The Child
The child must normally live with the applicant. Different rules can apply to foster arrangements or where separated parents share responsibility.
Immigration Status
The applicant must have a National Insurance number and an eligible immigration status or permission to access public funds. A partner must also have a National Insurance number.
Tax-Free Childcare Refunds And Withdrawals
Refunds should normally return to the childcare account from which the original provider payment was made. This allows the government top-up element to be handled correctly.
Provider Refunds
When a nursery, childminder or other provider refunds a Tax-Free Childcare payment, it should send the money back from the bank account that received it and use the parent’s childcare account number as the payment reference.
Do Not Ask For A Refund To A Personal Account
A provider should not usually refund a Tax-Free Childcare payment directly into the parent’s ordinary bank account. Part of the original payment may have been supplied by the government.
Withdrawing Money From The Childcare Account
Parents may be able to withdraw their own money from the account, but the corresponding government top-up is returned. A withdrawal therefore does not normally produce the full combined balance as personal cash.
Cancelled Childcare
If childcare is cancelled, ask the provider to follow the official refund process. Keep the original payment confirmation, cancellation correspondence and refund details.
Refund Delays
Contact the provider first to confirm the date and reference used. If the payment does not appear in the childcare account, contact the Childcare Service with the transaction evidence.
Common Tax-Free Childcare Account Problems
Account difficulties can involve sign-in details, provider registration, delayed transfers, top-up limits or an expired reconfirmation period.
Cannot Sign In
Check the user ID, password and security details. Use the recovery options provided by the childcare service and contact the Childcare Service helpline when access cannot be restored.
Provider Does Not Appear
Search using the provider’s exact name, postcode and regulator reference. The provider may be approved but not yet signed up to receive Tax-Free Childcare payments.
Top-Up Is Lower Than Expected
Check how much top-up has already been received in the current entitlement period and year. The quarterly or annual maximum may have been reached.
Money Has Not Reached The Provider
Confirm that the payment was sent from the correct child’s account, check the transaction status and allow for bank-processing times. Payments above £2,000 can take longer.
Provider Cannot Match The Payment
Give the provider the unique child reference shown for Tax-Free Childcare payments. The provider may have received the money but allocated it to an unidentified balance.
Account Shows Reconfirmation Is Due
Sign in and complete the eligibility confirmation before the displayed deadline. Check whether the service requests further evidence or updated income information.
Technical Service Problems
Save screenshots, error messages and dates when the online service prevents an important payment or reconfirmation. Official guidance explains that compensation may be available in some circumstances where technical problems cause financial loss.
Tax-Free Childcare Account And Other Support
Tax-Free Childcare can be used alongside some forms of childcare support but is incompatible with others. Compare the full household position before changing an existing claim.
| Support | Can It Usually Be Used With Tax-Free Childcare? | Important Point |
|---|---|---|
| Funded Childcare Hours | Yes | The account may help pay approved costs remaining outside the funded entitlement. |
| Universal 15 Hours For 3 And 4-Year-Olds | Yes | Use the account for additional approved childcare costs. |
| Free Childcare For Working Parents | Yes | Both schemes are managed through the childcare account service. |
| Universal Credit | No | Tax-Free Childcare cannot be received while claiming Universal Credit. |
| Childcare Vouchers | No | Existing voucher users must follow the rules for leaving the voucher scheme. |
| Childcare Grant Or Student Childcare Bursary | Normally No | Student childcare grants or bursaries can prevent Tax-Free Childcare eligibility. |
| Child Benefit | Yes | Child Benefit is separate from the childcare account. |
Tax-Free Childcare And Universal Credit
Families cannot receive both at the same time. Universal Credit can include support beyond childcare, so compare the entire Universal Credit award with the potential Tax-Free Childcare top-up.
Official guidance advises waiting for the Tax-Free Childcare application decision before cancelling Universal Credit.
Tax-Free Childcare And Childcare Vouchers
A parent cannot continue receiving childcare vouchers while using Tax-Free Childcare. An employer normally needs to be told within the applicable period after the Tax-Free Childcare application.
Tax-Free Childcare And Funded Hours
Eligible families can generally use both. The funded entitlement reduces the core childcare hours, while the account can help pay for additional hours, wraparound care, holiday care or other qualifying childcare.
Related Tax-Free Childcare Guides
Continue with detailed guides covering eligibility, account payments, reconfirmation, provider setup and comparisons with other support.
Tax-Free Childcare Guide
Understand the scheme, top-up limits, qualifying childcare, eligibility rules and application process.
Read The Guide →Tax-Free Childcare Eligibility
Review the main work, earnings, income, child-age and immigration conditions.
Check Eligibility →Tax-Free Childcare Calculator
Estimate monthly and annual government top-ups based on your eligible childcare spending.
Calculate Your Top-Up →Paying A Childcare Provider
Follow the process for adding a provider, depositing money and sending payment from the online account.
Payment Guide →Tax-Free Childcare Reconfirmation
Learn how to find your deadline, confirm details and avoid an interruption to childcare support.
Reconfirm Eligibility →TFC vs Universal Credit
Compare top-ups, reimbursement, eligibility, cash flow and the effect on wider household support.
Compare The Schemes →Tax-Free Childcare Account FAQs
Answers to common questions about opening, funding and managing a Tax-Free Childcare account.
Calculate Your Tax-Free Childcare Account Top-Up
Enter the amount you plan to deposit, the top-up already received and your provider payment to estimate how much could be available in your childcare account.
Calculate Your Top-Up