Tax-Free Childcare Calculator
Get up to £2,000 per child per year from the government. For every £8 you pay in, the government tops up £2.
Tax-Free Childcare Savings Calculator
How Tax-Free Childcare Works
| Your Annual Childcare Spend | Government Top-Up | Your Actual Cost |
|---|---|---|
| £2,000 | £500 | £1,600 |
| £5,000 | £1,250 | £4,000 |
| £8,000 | £2,000 | £6,400 |
| £10,000+ | £2,000 (max) | £8,000+ |
Maximum Savings: £2,000 per child per year (£4,000 for disabled children). To get the full £2,000 top-up, you need to spend £10,000 on childcare annually per child.
Eligibility Requirements
Child Age
Your child must be under 12 (or under 17 if disabled)
Working Requirements
- • Both parents must work (or single parent if applicable)
- • Each parent earns at least £183.82/week (National Minimum Wage for 16 hours)
- • Neither parent earns over £100,000 per year
Immigration Status
You must have a National Insurance number and live in the UK
Cannot Claim If...
- • You're claiming Tax Credits
- • You're claiming Universal Credit
- • You're using childcare vouchers for the same child
Tax-Free Childcare vs Childcare Vouchers
| Feature | Tax-Free Childcare | Childcare Vouchers (Closed) |
|---|---|---|
| Status | Open to new applicants | Closed October 2018 |
| Max annual savings per child | £2,000 | £933 (basic rate taxpayer) |
| Self-employed eligible? | ✓ Yes | ✗ No |
| Age limit | Under 12 | Under 16 |
| Can use with 30 hours? | ✓ Yes | ✓ Yes |
Note: Childcare voucher schemes closed to new entrants in October 2018. If you're already receiving vouchers, you can continue until your child reaches age 16, but you should calculate whether switching to Tax-Free Childcare would save you more.
How to Apply for Tax-Free Childcare
Create Account
Apply through the government childcare service website
Verify Details
HMRC checks your eligibility automatically
Pay In Money
Deposit funds and government adds 25%
Pay Provider
Use your account to pay registered childcare
Frequently Asked Questions
How much can I get from Tax-Free Childcare?
You can receive up to £2,000 per child per year (£4,000 for disabled children). For every £8 you pay into your account, the government adds £2 - that's a 25% top-up on your childcare spending.
Can I use Tax-Free Childcare with 30 hours free childcare?
Yes! You can use both schemes together. Use Tax-Free Childcare to pay for additional hours beyond your 30 free hours, meals, nappies, and other childcare costs.
What is the income limit for Tax-Free Childcare?
Each parent must earn at least £183.82 per week (equivalent to 16 hours at National Minimum Wage) but no more than £100,000 per year. If you're on maternity/paternity leave, you're still eligible.
Can self-employed people use Tax-Free Childcare?
Yes, self-employed individuals are eligible for Tax-Free Childcare as long as they meet the minimum and maximum income requirements. This is a key advantage over the old childcare voucher scheme.
What happens if I earn over £100,000?
If either parent earns over £100,000 adjusted net income, you're not eligible for Tax-Free Childcare. Consider salary sacrifice, pension contributions, or charitable donations to bring your income below the threshold.
How do I reconfirm my eligibility?
You must reconfirm your eligibility every 3 months. HMRC will remind you when it's time. If your circumstances change (new job, income changes), update your details immediately.
What childcare providers can I pay?
You can pay any Ofsted-registered provider including nurseries, childminders, nannies, after-school clubs, and holiday clubs. Your provider must be signed up to receive Tax-Free Childcare payments.
Can I switch from childcare vouchers to Tax-Free Childcare?
Yes, but you must stop childcare vouchers for at least one full tax year before switching for the same child. Calculate which scheme gives you more savings before switching.
Calculate Your Total Childcare Costs
Use our comprehensive calculator to see all available government support including Tax-Free Childcare, 30 hours free, and Universal Credit childcare element.
Go to Full Calculator