Tax-Free Childcare in the UK: Who Qualifies and How It Works
In this guide
Quick answer: Tax-Free Childcare is a UK government scheme where, for every £8 you pay into a childcare account, the government adds £2. You can get up to £500 every 3 months per child (up to £2,000 a year), or £1,000 every 3 months (up to £4,000 a year) if your child is disabled. You usually need to be working, your child must be 11 or younger (16 or younger if disabled), and your provider must be signed up.
How does Tax-Free Childcare work?
You open an online childcare account and pay money in by Direct Debit, standing order or bank transfer. The payment usually appears within one working day, and the government’s top-up is added at the same time. You then use the account to pay your childcare provider.
Example from GOV.UK: your childcare bill is £250. You pay £200 in (80%), the government adds £50 (20%), and you use the £250 to pay the provider.
You must sign in to your childcare account every 3 months to confirm you are still eligible. If you don’t, Tax-Free Childcare will stop.
What can you use it for?
- Childminders, nurseries and nannies.
- After-school, breakfast and holiday clubs.
- Extras such as nappies, meals and trips, where the provider supplies them.
Your provider must be an approved one, such as a registered childminder, nanny, playscheme, nursery or club; a childminder or nanny registered through an agency; a registered school; or a home care worker with a registered agency. Check with your provider that it is already signed up before you apply.
Who is eligible?
It depends on your child’s age and circumstances, whether you are working, your income and your partner’s, and your immigration status. Check the GOV.UK eligibility checker for the immigration-status detail.
Child’s age
Eligible until the September after they turn 11, or after they turn 16 if disabled (certified blind or severely sight-impaired, or receiving certain disability benefits).
Work
You, and your partner if you have one, should usually be in work (employed or self-employed), including on sick leave, annual leave, maternity, paternity, shared parental or adoption leave. If one parent isn’t working, you may still qualify if the other works and the non-working parent gets certain benefits such as Carer’s Allowance.
Income
| Your age | Expected minimum earnings over the next 3 months, before tax |
|---|---|
| 21 or over | £2,643.68 (£203.36 a week) |
| 18 to 20 | £2,256.80 (£173.60 a week) |
| Under 18 or apprentice | £1,664 (£128 a week) |
That is the National Minimum Wage or Living Wage for 16 hours a week on average. If you started a business less than 12 months ago, it doesn’t matter how little you earn.
When can’t you claim?
- The child doesn’t usually live with you, or you foster the child.
- You or your partner’s expected adjusted net income, including foreign income, is over £100,000 for the tax year.
- You or your partner get a childcare bursary or grant.
- You get Universal Credit or childcare vouchers at the same time; you can’t have both.
Common mistakes
- Choosing a provider that isn’t signed up.
- Forgetting the 3-month reconfirmation.
- Not checking Universal Credit or vouchers first.
FAQ
Does it cover a nursery abroad?
You may be able to use it for a provider in a European Economic Area country; contact HMRC to check.
I’m new to the UK. Does my status matter?
Yes, immigration status is part of eligibility. Check GOV.UK, and see our Child Benefit guide for related rules.
Key takeaways
- £2 top-up for every £8 paid in.
- Up to £2,000 a year per child, £4,000 if disabled.
- Must reconfirm every 3 months.
Related guides
Last updated: October 2026. General information, not financial advice. Rates change; check GOV.UK.
Sources
- GOV.UK: Tax-Free Childcare