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Tax Free Childcare Calculator

With this easy-to-use UK childcare cost calculator, you can estimate your childcare savings, plan your payments, and make the most of your Tax-Free Childcare scheme in the UK.

Tax-Free Childcare Calculator UK

Tax-Free Childcare Calculator

Amount you pay into your childcare account

£0.00

Amount contributed by the Government

£0.00

For every £8 you pay into your online account, the government will add an extra £2.

The government will top up a maximum of £500 every 3 months for each child (£2,000 a year), or £1,000 (£4,000 a year) if your child is disabled.

This calculator helps you figure out how much you need to pay for a specific bill, based on your remaining government allowance for the quarter. Learn more.

Tax-Free Childcare UK – Government Support for Parents

The UK Government’s Tax-Free Childcare scheme helps parents save money on childcare costs. You can get up to £500 every 3 months (£2,000 a year) for each child, or £1,000 every 3 months (£4,000 a year) if your child is disabled.

With Tax-Free Childcare UK, the government contributes £2 for every £8 you pay to your registered childcare provider through your online childcare account.You can also get Tax-Free Childcare alongside 15 or 30 hours of free childcare — if you’re eligible for both.

How the UK Tax-Free Childcare Scheme Works

The Tax-Free Childcare UK scheme allows working parents to pay for approved childcare through an online account.

  • For every £8 you deposit, the UK Government adds £2.

  • You can use up to £10,000 per child per year (you pay £8,000, government adds £2,000).

  • For disabled children, this increases to £20,000 per year (you pay £16,000, government adds £4,000).

You can use this benefit to pay for:

  • Registered childminders, nurseries, and nannies

  • After-school clubs and holiday play schemes

🔹 Your childcare provider must be registered with the Tax-Free Childcare scheme before you can make payments.

Use our Tax-Free Childcare Calculator UK to see exactly how much you need to deposit to receive the full government top-up.

Tax-Free Childcare for Disabled Children

If your child is disabled, you can get up to £4,000 per year in government contributions.
You can use this to pay for:

  • Extra childcare hours

  • Specialist care

  • Equipment like mobility aids or sensory tools

Speak with your childcare provider to confirm which items and services qualify under the Tax-Free Childcare UK scheme.

Tax-Free Childcare UK Eligibility Criteria

Your eligibility depends on:

  • Your work status (employed, self-employed, or company director)

  • Your income level (and your partner’s, if applicable)

  • Your child’s age and circumstances

  • Your immigration status

Eligibility if You Are Working

You can usually claim Tax-Free Childcare UK if you (and your partner, if applicable) are:

  • In paid work

  • On sick leave, annual leave, or parental leave (maternity, paternity, or adoption)

  • Returning to work within 31 days of applying

If You’re Not Currently Working

You may still qualify if your partner works and you receive one of the following:

  • Incapacity Benefit

  • Severe Disablement Allowance

  • Carer’s Allowance (or Carer Support Payment in Scotland)

  • Contribution-based Employment and Support Allowance (ESA)

You can also apply if you are starting or restarting work within 31 days.

Income Requirements

Over the next three months, you (and your partner, if applicable) must expect to earn at least:

  • £2,379 if aged 21 or over

  • £1,788 if aged 18–20

  • £1,331 if under 18 or an apprentice

These figures are based on 16 hours per week at the National Minimum or Living Wage.

If you are self-employed or have irregular income, you can use your average annual income to calculate eligibility.

You remain eligible if you:

  • Earn at least £9,518 per year (if 21+)

  • Started your business less than 12 months ago

  • Have multiple jobs — income from all roles counts

Note: Dividend income, interest, pensions, or property income do not count towards this threshold.

If you or your partner have an adjusted net income over £100,000, you are not eligible for Tax-Free Childcare UK.

Eligible Children

Your child must:

  • Be 11 years old or younger

  • Live with you most of the time

  • Stop being eligible on 1 September following their 11th birthday

For disabled children, eligibility extends until 1 September after their 16th birthday if they:

  • Receive Disability Living Allowance (DLA), Personal Independence Payment (PIP), or Child Disability Payment (Scotland)

  • Are blind or severely sight-impaired

Immigration Status Requirements

To qualify for Tax-Free Childcare UK, you must have:

  • A National Insurance number, and

  • One of the following statuses:

    • British or Irish citizenship

    • Settled or pre-settled status (or have applied)

    • Permission to access public funds

If you live in the EU, Switzerland, Norway, Iceland, or Liechtenstein and work in the UK as a frontier worker, you may still qualify if:

  • Your work began before 1 January 2021

  • You’ve worked in the UK at least once every 12 months

You’ll need to provide your Frontier Worker permit when applying.

Tax-Free Childcare vs Other Schemes

You cannot get Tax-Free Childcare at the same time as:

  • Working Tax Credit or Child Tax Credit

  • Universal Credit

  • Childcare Vouchers

Use our UK Childcare Cost Calculator to see which option saves you more.

Important:

  • Applying for Tax-Free Childcare will immediately stop any existing Tax Credit claim.

  • You must tell your employer within 90 days if you’re switching from Childcare Vouchers.

  • Wait for your Tax-Free Childcare approval before ending Universal Credit.

Bursaries and Grants

If you or your partner receive a childcare bursary or grant, or expect to do so within three months, you cannot get Tax-Free Childcare UK.

How to Apply for Tax-Free Childcare UK

You can apply online through the official UK Government website.
If someone else already receives free childcare hours for your child, their funding will stop after the next term — and you’ll start receiving Tax-Free Childcare UK benefits.

If you have a partner, you must include them in your application if you:

  • Are married, in a civil partnership, or living together as partners

You cannot both have accounts for the same child.

If you are separated, only one parent can claim Tax-Free Childcare UK. If both apply, HMRC will decide who receives it.

Maximise Your Savings with the Tax-Free Childcare Calculator UK

Use our Tax-Free Childcare Calculator UK to:
✅ See how much the government will pay
✅ Calculate how much to deposit
✅ Plan your total annual childcare savings

Get accurate figures instantly and take full advantage of your UK government childcare support.

Find answers to frequently asked questions

Tax-Free Childcare UK is a government scheme that helps working parents save up to 20% on childcare costs. For every £8 you pay, the UK Government adds £2 to your childcare account.

You can receive up to £500 every 3 months (£2,000 a year) per child. If your child is disabled, this increases to £1,000 every 3 months (£4,000 a year).

You must be working (or self-employed), earn at least the National Minimum Wage for 16 hours per week, and your child must be under 12 (or under 17 if disabled).

No, you cannot use Tax-Free Childcare and Universal Credit at the same time. Use a childcare cost calculator to find which option benefits you most.

Yes, self-employed parents can apply. If you’ve been self-employed for less than 12 months, you can still qualify even if you earn less than the minimum threshold temporarily.

You can use it for approved childcare providers in the UK, including nurseries, childminders, nannies, and after-school clubs.

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