Tax-Free Childcare calculator
For every £8 you pay in, the government adds £2, so it covers 20% of your childcare bill, up to £2,000 a year per child (£4,000 if your child is disabled).
Who can get it?
- Your child is 11 or under (16 or under if disabled). They stop being eligible on 1 September after their 11th (or 16th) birthday.
- You, and your partner if you have one, each expect to earn at least £2,643.68 over the next 3 months (aged 21+). That's the National Living Wage for 16 hours a week. Lower amounts apply for under-21s and apprentices, and new self-employed businesses are exempt.
- Neither of you has adjusted net income over £100,000. A salary sacrifice pension can bring you back under. See the salary sacrifice calculator.
- You're not claiming Universal Credit. UC has its own childcare element, so you have to choose one.
- Your provider is registered and signed up to Tax-Free Childcare.
How it works
You open a childcare account on GOV.UK, pay in, and pay your nursery, childminder or club from the account. You must reconfirm your eligibility every 3 months, or the top-ups stop. You can also use it alongside the free childcare hours in England.
Sources: GOV.UK Tax-Free Childcare, eligibility.
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How much is Tax-Free Childcare worth?
It pays 20% of your childcare costs, as £2 for every £8 you pay in, up to £500 every 3 months per child (£2,000 a year), or £1,000 every 3 months (£4,000 a year) for a disabled child.
Can I get Tax-Free Childcare and Universal Credit?
No. You can't get both at the same time. Compare them first, because the UC childcare element can be worth more on lower incomes.
Can I use it with 30 hours free childcare?
Yes. In England you can use Tax-Free Childcare to pay for hours and costs above the free entitlement.
Related calculators & guides
Child Benefit charge (HICBC) · Marriage Allowance · Salary sacrifice · Take-home pay · 50/30/20 budget · Savings goal · No-spend challenge · Universal Credit