Tax-Free Childcare is a government scheme that tops up what you pay into a childcare account. It is separate from the free hours: it helps with the childcare you pay for, including the hours on top of any funded hours. This page uses the rules published on GOV.UK, checked on 22 October 2026.
How the top-up works
You open an online childcare account and pay money in by Direct Debit, standing order or bank transfer. For every £8 you pay in, the government adds £2. That is a 20% top-up on the total, or 25% on what you pay in. You then use the account to pay your childcare provider.
For example, if your childcare bill is £250, you pay £200 into the account and the government adds £50.
The top-up is limited to:
- £500 every 3 months, which is up to £2,000 a year for each child
- £1,000 every 3 months, which is up to £4,000 a year for each disabled child
To receive the maximum £2,000 a year for one child, you need to pay in £8,000 over the year. The government adds the top-up when your payment arrives, usually within one working day.
What you can pay for
You can use Tax-Free Childcare for registered childminders, nurseries, nannies, playschemes and clubs, including after-school clubs, breakfast clubs and holiday clubs. You can also pay for extras the provider supplies, such as nappies, meals and trips. The provider must be signed up to Tax-Free Childcare, so check before you apply. A relative can only be paid if they are a registered childminder and look after your child outside your home.
Who can get it
You (and your partner, if you have one) must each expect to earn at least £2,643.68 over the next 3 months if you are 21 or over (£203.36 a week), £2,256.80 if you are 18 to 20, or £1,664 if you are under 18 or an apprentice. This is the minimum wage for 16 hours a week. If you started your business less than 12 months ago, you can still qualify on lower earnings. Your child must be 11 or younger (the scheme ends in the September after they turn 11), or 16 or younger if they are disabled.
You are not eligible if you or your partner expect an adjusted net income over £100,000 in the current tax year, if your child does not usually live with you, or if either of you gets a childcare bursary or grant.
If you claim Universal Credit or childcare vouchers, you cannot get Tax-Free Childcare at the same time. Wait for a decision on your Tax-Free Childcare application before you cancel a Universal Credit claim. If you are in a childcare voucher scheme, you must tell your employer within 90 days of applying, and you cannot rejoin the scheme afterwards. Use the government childcare calculator to see which route suits your family.
How to apply
Apply on GOV.UK. You need National Insurance numbers, a Unique Taxpayer Reference if you are self-employed, your child’s birth certificate reference number if you have one, and the date you started or will start work. If you live in England, HMRC also checks whether you can get 30 hours free childcare in the same application, so you only apply once.
You can apply at any time, unless you are about to start or return to work. In that case, the date matters:
| You start or return to work between | You can apply from |
|---|---|
| 1 May and 30 September | 1 April |
| 1 October and 31 January | 1 September |
| 1 February and 30 April | 1 January |
You must sign in every 3 months to confirm your details, or your Tax-Free Childcare stops.
Using it with free hours
If you get free childcare for working parents, you can still pay your provider with Tax-Free Childcare for the hours that are not free. It does not pay for the funded hours, because those are not charged. In practice it helps with extra hours, holiday weeks that fall outside the 38-week funded pattern, and optional extras such as meals. Our cost calculator shows how a bill looks after funded hours and the 20% top-up.
How it compares with Universal Credit childcare
Universal Credit can pay back up to 85% of your childcare costs, up to £1,071.09 a month for one child or £1,836.16 for two or more. That is a different scheme with its own rules, and you cannot claim both at the same time. Which is better depends on your income, how much childcare you buy and your other benefits.
Questions
How much is the Tax-Free Childcare top-up?
£2 for every £8 you pay in. The government top-up is limited to £500 every 3 months (£2,000 a year) for each child, or £1,000 every 3 months (£4,000 a year) if the child is disabled.
Can I get Tax-Free Childcare and 30 hours free childcare?
Yes. You can use both. The free hours cover the funded sessions and Tax-Free Childcare helps with what you pay on top.
Who cannot get Tax-Free Childcare?
You cannot get it if you or your partner expect an adjusted net income over £100,000, if you claim Universal Credit or childcare vouchers, if your child does not usually live with you, or if you earn below the minimum.
