Use this Tax-Free Childcare calculator to estimate how much you should pay into your childcare account and how much the UK government will add. The scheme provides a 20% top-up, helping reduce the cost of childcare for working families.
Enter the total amount you pay your provider each month
Children aged 11 or under (or 16 if disabled)
To cover your childcare costs, you only need to pay 80% of the total amount into your Tax-Free Childcare account.
The government will automatically add the remaining 20%.
This ensures you receive the full available top-up without overpaying.
Apply online via GOV.UK and open a tax-free childcare account for each eligible child.
For every £8 you pay into your account, the government automatically adds £2 — an effective 20% top-up on your deposits.
Use the total balance — your deposits plus the government top-up — to pay your registered childcare provider directly.
See how the scheme works for different family situations.
Up to £2,000 free per year
Up to £4,000 free per year across both children
Pay in £8,000 per year to receive the full £2,000 top-up
Pay in £16,000 per year to receive the full £4,000 top-up
Tax-Free Childcare is a UK government scheme designed to help working parents with the cost of registered childcare. You open an online account for each eligible child, deposit money, and the government automatically tops up your contributions at a rate of 20%.
The scheme can be used to pay registered childminders, nurseries, nannies, after-school clubs, and holiday play schemes — as long as the provider is registered with Ofsted or an equivalent body.
The government adds £2 for every £8 you pay into your childcare account. This top-up is applied automatically and can be used immediately. There is no need to claim or apply separately for each payment you make.
The maximum government contribution is £2,000 per child per year (£500 per quarter). If your child is disabled, this doubles to £4,000 per year (£1,000 per quarter). You can hold accounts for multiple children, each with their own annual limit.
You may be eligible for Tax-Free Childcare if:
Eligibility depends on your individual circumstances. Always check the official guidance at GOV.UK Tax-Free Childcare before applying.
Understanding the scheme fully helps you get the most from it.
The government adds £2 for every £8 you pay — not £2 for every £10 of total cost. To receive £2 in top-up, you need to deposit £8 yourself.
You must reconfirm every 3 months or your account is suspended. HMRC sends a reminder, but it is your responsibility to act on it before the deadline.
Tax-Free Childcare cannot be used alongside Universal Credit, Working Tax Credit, Child Tax Credit, or employer childcare vouchers. Claiming both may result in overpayment recovery.
The £2,000 annual limit is per child, not per family. Two eligible children means up to £4,000 total in government top-up per year.
If your child receives Disability Living Allowance or a similar qualifying benefit, they may be eligible for the higher £4,000 annual cap. Always check before assuming the standard rate applies.
Eligibility depends on income, employment status, and circumstances. If either parent earns over £100,000, or your situation has changed, always recheck before assuming you still qualify.
The government will pay up to £2,000 per child per year (£500 per quarter). If your child is disabled, the maximum goes up to £4,000 per year (£1,000 per quarter). The top-up is 20% — for every £8 you pay in, the government adds £2. Each child has their own separate annual allowance.
Your child must be 11 or under. Eligibility ends on 1 September following their 11th birthday. Disabled children are eligible until 1 September after their 16th birthday, provided they receive a qualifying disability benefit such as Disability Living Allowance.
No. Tax-Free Childcare cannot be used at the same time as Working Tax Credit, Child Tax Credit, Universal Credit, or employer childcare vouchers. However, you can still use your 15 or 30 free hours childcare entitlement alongside Tax-Free Childcare, as these are separate schemes.
The government contributes 20% of your childcare deposit. For every £8 you pay into your Tax-Free Childcare account, the government adds £2. This top-up is applied automatically. It is capped at £500 per child per quarter (£2,000 per year), or £1,000 per quarter (£4,000 per year) for disabled children.
You — and your partner, if you have one — must each expect to earn at least the National Minimum Wage or Living Wage for 16 hours per week. Neither parent can earn more than £100,000 per year. You must not be receiving Universal Credit, Working Tax Credit, Child Tax Credit, or employer childcare vouchers. Your child must be aged 11 or under (16 if disabled).
Yes. You must reconfirm your eligibility every 3 months to keep your account active and continue receiving the government top-up. HMRC will send a reminder, but it is your responsibility to complete the reconfirmation. If you miss the window, your account will be suspended until you reconfirm.
Apply online through GOV.UK using a Government Gateway account. You apply for each child separately. Once approved, you will need to reconfirm your eligibility every 3 months. Most applications are reviewed within a few days.
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