Tax-Free Childcare
Understand how Tax-Free Childcare works, check the main eligibility conditions and estimate the government top-up that could help with approved nursery, childminder, wraparound and holiday childcare costs.
Calculate Your Top-UpEstimate Your Top-Up
Calculate the potential government contribution and the amount your family may need to deposit.
Start CalculatorCheck Eligibility
Review the main child-age, employment, earnings, income and immigration-status conditions.
Eligibility GuideOpen Your Account
Learn how to apply, deposit money, select an approved provider and reconfirm your details.
Official ApplicationTax-Free Childcare Calculator
Enter your qualifying childcare costs and family details to estimate the government top-up, your required contribution and the remaining annual top-up allowance.
Your Childcare Costs
Use only childcare costs that you expect to pay to an approved provider through your Tax-Free Childcare account.
Your Tax-Free Childcare Estimate Will Appear Here
Add your qualifying childcare costs, number of children and any top-up already received to estimate your potential government contribution.
Your Tax-Free Childcare Estimate
Tax-Free Childcare At A Glance
The scheme uses an online childcare account. Your family pays money into the account and the government adds a top-up, subject to eligibility and payment limits.
Explore Childcare Funding And Cost Support
Compare Tax-Free Childcare with funded hours, Universal Credit childcare support and practical childcare-cost calculators.
Use Your Childcare Account To Pay An Approved Provider
Tax-Free Childcare is not a refund added to your salary. Eligible families open an online childcare account, deposit money and use the topped-up balance to pay an approved childcare provider.
The account can support different forms of registered childcare, including nursery care, childminders, eligible nannies, breakfast clubs, after-school clubs, play schemes and holiday clubs.
- Check that the provider is approved and signed up to the scheme.
- Deposit the family contribution into the childcare account.
- Allow the government top-up to be added to the account.
- Pay the childcare provider from the online account.
- Reconfirm your eligibility details every three months.
- Review the scheme if income, work or family circumstances change.
How Tax-Free Childcare Works
Tax-Free Childcare is a UK government scheme designed to help eligible working families pay for approved childcare. Parents create an online childcare account for each eligible child and use that account to pay registered providers.
For every £8 paid into the account, the government adds £2. This means the family normally pays 80% of the qualifying childcare payment and the top-up covers the remaining 20%, subject to the scheme limits.
Standard Top-Up Limit
The standard maximum government top-up is £500 in each three-month entitlement period for each eligible child. This provides a potential maximum of £2,000 per child over a year.
Disabled-Child Top-Up Limit
For an eligible disabled child, the maximum can increase to £1,000 every three months, up to £4,000 per year. Additional conditions apply when identifying a child for the higher limit.
Payments Into The Account
Money can be paid into the childcare account using methods supported by the service, including bank transfer, standing order or Direct Debit. The government top-up is added to eligible deposits, subject to the available allowance.
Paying Your Childcare Provider
Once funds are available, the parent selects the approved provider through the childcare account and makes the payment. The provider must be signed up to receive Tax-Free Childcare payments.
Family Deposit
The amount paid into the childcare account by the parent, partner, employer or another contributor.
Government Top-Up
The additional amount credited to the account, subject to the scheme’s quarterly and annual limits.
Read the official GOV.UK Tax-Free Childcare guidance before applying or changing an existing childcare-support claim.
Who Is Eligible For Tax-Free Childcare?
Eligibility depends on the child’s age and circumstances, the work and income position of the parent and partner, and the family’s immigration status. Both members of a couple normally need to meet the relevant conditions unless an exception applies.
Child-Age Conditions
A child is normally eligible until the September after turning 11. An eligible disabled child can remain within the scheme until the September after turning 16.
Work Conditions
Parents can generally qualify when employed or self-employed. Certain periods of statutory family leave, annual leave and sick leave may also count. Special rules can apply where one partner is working and the other receives a qualifying benefit.
Minimum Earnings
Each working parent normally needs to expect earnings equivalent to at least 16 hours per week at the applicable National Minimum Wage or National Living Wage. The monetary threshold depends on age and can change when wage rates are updated.
| Worker Category | Current 3-Month Minimum | Approximate Weekly Equivalent |
|---|---|---|
| Aged 21 Or Over | £2,643.68 Before Tax | £203.36 Per Week |
| Aged 18 To 20 | £2,256.80 Before Tax | £173.60 Per Week |
| Under 18 Or An Apprentice | £1,664 Before Tax | £128 Per Week |
Self-employed parents who started their business less than 12 months ago can be treated differently under the minimum-earnings test. Irregular earnings and multiple jobs can also require a different calculation.
Maximum Income
A parent is not eligible if they or their partner expect adjusted net income above £100,000 for the current tax year. This is an individual limit rather than a combined household-income limit.
Immigration Status
Applicants need a National Insurance number and an eligible immigration status, such as British or Irish citizenship, settled or pre-settled status, or permission to access public funds. Additional rules can apply to frontier workers.
Children Who Usually Live With You
The child normally needs to live with the applicant. Tax-Free Childcare is not generally available for a foster child through the standard application, although other support may be available.
Check the current Tax-Free Childcare eligibility rules before relying on a calculation.
What Can Tax-Free Childcare Pay For?
Tax-Free Childcare must be used to pay an approved childcare provider. The provider also needs to be signed up to receive payments through the scheme.
Nurseries And Preschools
Registered nurseries and eligible preschool settings can accept payments from a childcare account when they have completed the provider sign-up process.
Registered Childminders
Registered childminders and childminders working through a registered agency may be eligible to receive Tax-Free Childcare payments.
Approved Nannies
A nanny may qualify when registered through the appropriate voluntary register or childcare agency and signed up to the Tax-Free Childcare service.
Breakfast And After-School Clubs
Eligible wraparound childcare, including registered breakfast and after-school clubs, can be paid through the account. Check the provider rather than assuming that every school activity qualifies.
Holiday Clubs And Play Schemes
Registered holiday clubs and play schemes may qualify. This can make Tax-Free Childcare useful after a child starts school and no longer needs full-time nursery care.
Specialist Equipment For A Disabled Child
The additional support available for an eligible disabled child can also help a childcare provider obtain certain specialist equipment, such as mobility aids, where the relevant conditions are met.
| Childcare Type | Potentially Eligible? | What To Check |
|---|---|---|
| Registered Nursery | Yes | Provider is approved and signed up |
| Registered Childminder | Yes | Registration and account details |
| Approved Nanny | Potentially | Correct registration or agency status |
| After-School Club | Potentially | Approved childcare status |
| Holiday Club | Potentially | Registration and scheme sign-up |
| Unregistered Informal Care | Generally No | Tax-Free Childcare requires approved care |
You can review the official explanation of approved childcare covered by the scheme.
How To Apply For Tax-Free Childcare
Applications are made through the government childcare service. There is a combined application process for Tax-Free Childcare and working-parent funded childcare in England, allowing the service to assess which support may be available.
1. Check Which Scheme May Be Better
Compare Tax-Free Childcare with any Universal Credit childcare support or legacy childcare vouchers before making a change. The schemes cannot normally be received at the same time.
2. Gather Your Information
You may need personal, employment, income, partner and child information. Self-employed applicants can be asked for details connected with their business and expected earnings.
3. Complete The Online Application
Apply through the official childcare service. If accepted, an online childcare account is created for the eligible child.
4. Find Your Provider
Search for the provider in the childcare account using information such as its name, town, postcode or registration details. The provider must be signed up before account payments can be made.
5. Deposit Your Contribution
Pay money into the childcare account. The government top-up is normally credited at the same time, subject to the allowance available for the entitlement period.
6. Pay The Provider
Select the childcare provider and make the payment from the topped-up account. Allow enough time for deposits and provider payments to be processed before an invoice deadline.
7. Reconfirm Every Three Months
Sign in every three months and confirm that the information remains correct. Tax-Free Childcare can stop if the reconfirmation is not completed.
Start with the official Tax-Free Childcare step-by-step service.
Tax-Free Childcare And Other Childcare Support
Tax-Free Childcare can work alongside some forms of support but not others. Check the interaction before cancelling an existing claim or employer arrangement.
Funded Childcare Hours
Eligible families can use Tax-Free Childcare alongside funded early education or working-parent childcare hours. The account can be used for qualifying childcare costs that remain outside the funded provision.
Universal Credit Childcare Costs
A family cannot normally receive Tax-Free Childcare at the same time as claiming Universal Credit. Which option is better depends on the household’s circumstances and childcare costs.
Government guidance says to wait for a decision on the Tax-Free Childcare application before cancelling a Universal Credit claim. Obtain individual advice when changing support.
Childcare Vouchers
Tax-Free Childcare cannot normally be received at the same time as ongoing childcare vouchers or directly contracted childcare. If a successful applicant has an existing voucher arrangement, they generally need to tell their employer within 90 days.
Workplace Nurseries
Workplace nursery arrangements have separate tax rules. Compare the actual cost and employer terms with Tax-Free Childcare before choosing a scheme.
Childcare Bursaries And Grants
Receiving certain childcare bursaries or grants can prevent a Tax-Free Childcare claim. Students and trainees should check the conditions of their existing support.
| Support Type | Use With Tax-Free Childcare? | Important Point |
|---|---|---|
| Funded Childcare Hours | Usually Yes | Use Tax-Free Childcare for qualifying remaining costs |
| Universal Credit | No | Compare schemes before changing a claim |
| Childcare Vouchers | No Ongoing Dual Claim | Existing vouchers already held may still be usable |
| Workplace Nursery | Depends On Arrangement | Check employer and tax rules |
| Childcare Bursary Or Grant | May Prevent Eligibility | Review the specific award conditions |
Read the official guidance about Tax-Free Childcare, Universal Credit and childcare vouchers.
Related Childcare Support Guides
Continue comparing childcare costs, funded hours and government support with these related BabyDaycares.co.uk resources.
Childcare Cost Calculator
Estimate weekly, monthly and annual childcare costs before and after regular financial support.
Calculate Costs →Nursery Fee Calculator UK
Calculate nursery fees using booked hours, provider rates, funded childcare and additional charges.
Calculate Nursery Fees →Universal Credit Childcare
Understand qualifying childcare costs, reimbursement rules and how support differs from Tax-Free Childcare.
Read Support Guide →30 Hours Free Childcare
Review working-parent funded childcare and how it may be used alongside Tax-Free Childcare.
Read Funding Guide →Holiday Childcare Calculator
Estimate holiday-club, childminder and activity-camp costs during school breaks.
Calculate Holiday Costs →Childcare Eligibility Calculator
Review the main conditions connected with funded childcare and government childcare support.
Check Eligibility →Tax-Free Childcare FAQs
Answers to common questions about Tax-Free Childcare eligibility, government top-ups, approved providers and childcare-account payments.
Estimate Your Tax-Free Childcare Top-Up
Add your qualifying childcare costs, number of eligible children and top-up already received to estimate your potential government contribution and family payment.
Use Tax-Free Childcare Calculator