How It Works
You open an online childcare account for each child. For every £8 you pay in, the government adds £2 (a 20% top-up). You then use the account to pay your childcare provider directly.[1]
How Much Can You Get?
| Child Type | Max Government Top-Up per Year |
|---|---|
| Per child (up to age 11) | £2,000 |
| Per disabled child (up to age 17) | £4,000 |
To get the full £2,000 top-up, you’d pay in £8,000 per year (around £667 per month).[1]
Eligibility
Both parents (or the sole parent) must:[3]
- Be in work (employed or self-employed)
- Each earn at least the National Minimum Wage for 16 hours per week
- Each earn no more than £100,000 per year
- Not already be receiving Tax Credits, Universal Credit, or childcare vouchers
Self-employed in your first year? If you’re newly self-employed and not yet earning the minimum, you can still qualify during your start-up period (first 12 months).
What Childcare Qualifies?
You can pay any Ofsted-registered (or equivalent) childcare provider, including:[1]
- Nurseries and childminders
- After-school clubs and play schemes
- Home carers working for a registered agency
- Nannies registered with a childminder agency
Tax-Free Childcare vs Childcare Vouchers
Childcare vouchers (the old employer scheme) closed to new entrants in October 2018. If you’re still using vouchers, you can continue but cannot use both schemes simultaneously. For most people, Tax-Free Childcare provides more support.[4]
Reconfirming Eligibility
You must reconfirm your details every 3 months. If you miss a reconfirmation deadline, the government stops making top-up payments until you reconfirm.[1]
Frequently Asked Questions
How much can I save with Tax-Free Childcare?
The government tops up £2 for every £8 you pay, up to a maximum of £2,000 per child per year (or £4,000 for a disabled child). To get the full amount, you would pay in £8,000 per year.
Who is eligible for Tax-Free Childcare?
Both parents must be working and each earn at least the National Minimum Wage for 16 hours per week, and each earn no more than £100,000 per year. You cannot already be receiving Tax Credits or Universal Credit.
Can self-employed parents get Tax-Free Childcare?
Yes. Self-employed parents are eligible provided they meet the income requirements. If you are newly self-employed and not yet earning the minimum, you can still qualify during your first 12-month start-up period.
How often do I need to reconfirm for Tax-Free Childcare?
You must reconfirm your eligibility every 3 months. If you miss a reconfirmation deadline, the government stops making top-up payments until you reconfirm.
Further Reading
- Having Children & Tax Implications
- High Income Child Benefit Charge
- Employment Income & PAYE
- Registering as Self-Employed
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Sources
- Tax-Free Childcare — GOV.UK
- Childcare choices — GOV.UK
- Check if you can get Tax-Free Childcare — GOV.UK
- Employer-supported childcare — GOV.UK