What is Tax-Free Childcare?
Tax-Free Childcare is a government scheme that helps working parents pay for childcare. You open an online childcare account, pay money in, and the government tops it up. You then use that money to pay your provider.
How does Tax-Free Childcare work?
For every £8 you pay in, the government adds £2. In other words, it pays 20% of your bill and you pay 80%, up to a limit for each child. The government's payment is added at the same time as yours, and your money usually appears within one working day.
How much to pay into Tax-Free Childcare
Amount to pay in = your bill × 0.8
If your bill is £250, pay in £200. The government adds £50, and you can then pay your provider the full £250. This calculator does the same sum for your own bill, and it stops the top-up at the limit.
| Monthly bill | You pay in | Government adds | You pay in with a disabled child |
|---|---|---|---|
| £200.00 | £160.00 | £40.00 | £160.00 |
| £400.00 | £320.00 | £80.00 | £320.00 |
| £600.00 | £480.00 | £120.00 | £480.00 |
| £800.00 | £640.00 | £160.00 | £640.00 |
| £833.33 | £666.66 | £166.67 | £666.66 |
| £1,000.00 | £833.33 | £166.67 | £800.00 |
| £1,500.00 | £1,333.33 | £166.67 | £1,200.00 |
Above about £833 a month, the 20% stops growing because you've reached the limit. On a £1,200 monthly bill you'd get £2,000 a year, which is £166.67 a month rather than the £240 you might expect.
How much Tax-Free Childcare do you get?
The most you can get for each child is £500 every 3 months, or £2,000 a year. For a disabled child, it's £1,000 every 3 months, or £4,000 a year.
To reach the standard limit, your bills need to come to £2,500 every 3 months. The limits apply to each child, so two children can get up to £4,000 a year between them.
How much does the government top up?
The government top-up is 25p for each £1 of your own money, so paying in £100 brings £25. It's added at the same time as your payment. The maximum top-up is the limit above, so anything you pay in after reaching it gets no top-up until the next 3-month period.
Tax-Free Childcare eligibility: who can get it?
It depends on your child, your work, your income and your immigration status. You and any partner usually need to be working, or on sick, annual or parental leave. Employed and self-employed parents can both get it.
Minimum income for Tax-Free Childcare
You and any partner must each expect to earn at least this much over the next 3 months. It's the minimum wage for 16 hours a week.
| Your age or status | Over the next 3 months |
|---|---|
| 21 or over | £2,643.68 |
| 18 to 20 | £2,256.80 |
| Under 18 or an apprentice | £1,664.00 |
If you don't earn the same each month, you can use an average of what you expect over the tax year. Dividends, interest, property income and pension income don't count towards the minimum.
The Tax-Free Childcare income limit
You can't claim if you or your partner expect adjusted net income of more than £100,000 in the current tax year. People often call this the salary limit or the 100k limit, though it isn't based on salary alone. Each person is tested separately, so one parent going over the limit rules out the whole household. It's a cliff edge: £1 over can cost you the full top-up.
Adjusted net income isn't the same as your salary. Pension contributions can lower it, which is why our salary sacrifice calculator is worth a look if you're close to the line.
Tax-Free Childcare if you're self-employed
Self-employed parents can get it too. If you started your business less than 12 months ago, it doesn't matter how little you earn. Otherwise you can use your expected average over the tax year if you won't earn enough in the next 3 months. If you're both employed and self-employed, you can use your total earnings, or just your self-employed income if that would make you eligible.
Tax-Free Childcare age limit: when does it stop?
Your child is eligible until the September after they turn 11. For a disabled child, that's the September after they turn 16.
What can you use Tax-Free Childcare for?
You can pay for childminders, nurseries and nannies, as well as breakfast clubs, after-school clubs and holiday clubs. It also covers extras such as meals, nappies and trips if your provider supplies them. Your provider must be registered and signed up to the scheme, so check with them first.
How to set up and use your Tax-Free Childcare account
- Apply online. It usually takes 20 minutes, and you'll need your National Insurance number. You'll usually get a decision straight away, or within 10 days if extra checks are needed.
- Pay money in. Use Direct Debit, standing order or bank transfer.
- Pay your provider. Sign in and pay them from your childcare account.
- Reconfirm every 3 months. If you don't sign in and confirm your details, your Tax-Free Childcare will stop.
When to apply
You can usually apply at any time. If you're starting or returning to work, or you're on parental leave, your return date decides when you can apply.
| If you start or return to work | Apply from |
|---|---|
| 1 May to 30 September | 1 April |
| 1 October to 31 January | 1 September |
| 1 February to 30 April | 1 January |
Is Tax-Free Childcare worth it?
If you can get it and you have no other childcare support, it takes 20% off bills from a registered provider. The main reason to pause is that you can't have it at the same time as Universal Credit or childcare vouchers. Which is better depends on your situation, so use the government's childcare calculator to compare them before you switch.
Tax-Free Childcare questions
Can you use Tax-Free Childcare for holiday clubs?
Yes, as long as the club is registered and signed up to the scheme. The same goes for breakfast clubs and after-school clubs.
Can you use it for school meals or trips?
Only as extras supplied by your registered childcare provider. Ask them whether they can take payment for these through your account.
Can you use Tax-Free Childcare with funded hours?
Yes, you may be able to get both. In England, HMRC also checks whether you're eligible for Free Childcare for Working Parents when you apply. Use the top-up on the part of the bill you still have to pay.
Does Tax-Free Childcare work in Scotland, Wales and Northern Ireland?
Yes, it's a UK-wide scheme, and the same top-up applies. Free childcare hours differ between the nations, so enter the bill you actually pay after any funded hours.
Can both parents have a childcare account?
Not for the same child. If you're separated and jointly responsible, you need to decide who applies. If you can't, you both apply and HMRC decides.
Do I have to include my partner?
Yes, if you're married, in a civil partnership or living together as a couple. Their work and income count too, unless they'll be away from your household for over 6 months or they're a prisoner.
What if my partner isn't working?
You may still qualify if they get certain benefits, such as Carer's Allowance, Incapacity Benefit or contribution-based Employment and Support Allowance.
Can I use it to pay a nanny?
Yes, if the nanny is registered or works through a registered agency, and has signed up to the scheme.
Is this the official calculator?
No. Silyxa is an independent site. It gives estimates, and HMRC decides whether you qualify.
Sources
Checked on 5 November 2026 against the 2026/27 tax year.