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Childcare Calculator UKfrom World of Tardy

Tax-Free Childcare calculator, 2026/27

Tax-Free Childcare calculator UK

For every £8 you pay into a childcare account, the government adds £2: up to £2,000 a year per child, or £4,000 for a disabled child.

Lonny

Lonny explains

Plain talking: for every £8 you pay in, the government adds £2.

Are you eligible?

£2,643.68 is 16 hours a week at the £12.71 National Living Wage for people aged 21 and over. The minimum doesn't apply in your first year of self-employment.

How much to pay into your childcare account

Pay in 80% of your childcare bill and the government adds the other 20%. On a £1,000 monthly bill you pay in £800 and the top-up is £200. The top-up is capped at £500 per child every three months (£1,000 if your child is disabled), so once your bill passes £2,500 a quarter for a child, the extra gets no top-up.

How the account works

You open one account per child through the GOV.UK Childcare Service, pay money in by bank transfer, standing order or Direct Debit, and pay your provider from it. The top-up usually lands within a working day. You must sign in every three months to confirm you're still eligible, or the top-ups stop. Your provider has to be signed up to Tax-Free Childcare.

You can use it for registered nurseries, childminders, nannies, after-school, breakfast and holiday clubs, and for extras such as meals, nappies and trips when your provider supplies them.

Who can get it

  • Your child is 11 or under (eligible until the September after they turn 11), or 16 or under if disabled.
  • You, and your partner if you have one, are working or on paid leave, and each expect to earn at least £2,643.68 over the next three months (£203.36 a week) if you're 21 or over.
  • Neither of you expects adjusted net income over £100,000.
  • You don't get Universal Credit or childcare vouchers at the same time.

If you started your business less than 12 months ago, the minimum earnings don't apply.

Using it with the free hours

Yes, you can use both. The free hours cover the funded hours; Tax-Free Childcare then pays 20% of the rest: hours above your entitlement, holiday weeks and extras. In Northern Ireland, the 15% NI Childcare Subsidy comes off the bill first for children not yet at primary school, and Tax-Free Childcare applies to what's left.

Tax-Free Childcare or Universal Credit?

You can't have both. Tax credits ended in April 2025, so families on a low income now compare Tax-Free Childcare with the Universal Credit childcare element, which pays back 85% of costs. For most families who qualify for Universal Credit, the 85% is worth more. If you still have childcare vouchers, compare carefully: once you open a Tax-Free Childcare account, your vouchers stop for good.

Sources

Checked . Every figure on this page comes from these sources.

This site gives estimates. For a final answer on what you can get, use the GOV.UK childcare calculator.