← Back to Sorted Tax-Free Childcare · UK guide 2025

Working parents — are you missing £2,000/year per child?

Last verified 5 Jun 2026 · Source HMRC + DfE

Tax-Free Childcare is HMRC's flagship working-parent scheme. For every £8 you pay into your Tax-Free Childcare account, HMRC adds £2 on top — up to £2,000 a year per child (£4,000 if your child is disabled). Around 3 million UK families qualify but only about 600,000 use it.

£2,000Max per child per year
£4,000Max per disabled child
20%Top-up rate (£2 for every £8)
3M+UK families eligible (HMRC)
How do I apply? Open Family hub

Who is eligible?

All five must be true:

  • You (and your partner if you have one) each earn at least £167 a week on average (the equivalent of 16 hours at minimum wage). Self-employed parents who started in the last 12 months are exempt from the minimum.
  • Neither of you earns over £100,000 a year
  • Your child is under 11 (under 16 if disabled)
  • Your child usually lives with you
  • You are not receiving Universal Credit Childcare Element, Tax Credits Childcare Element, or your employer's childcare vouchers
Statutory leave still qualifies You can claim if you're on statutory maternity/paternity/adoption leave, on sick leave, or annual leave. The £167/week test looks at average expected earnings, not actual earnings during the leave.

How much you get

  • For every £8 you pay in, HMRC adds £2
  • Maximum top-up: £500 per child every 3 months, so £2,000 per child per year
  • If your child is disabled: £1,000 per child every 3 months, so £4,000 per child per year
  • You can pay in as little or as much as you want — the 20% top-up applies up to the cap

What you can spend it on

The money in your Tax-Free Childcare account can only be paid to registered childcare providers. That includes:

  • Nurseries and pre-schools registered with Ofsted (or equivalent in Scotland/Wales/NI)
  • Registered childminders
  • After-school clubs, breakfast clubs
  • Holiday clubs and play schemes
  • Many football academies, dance schools and music tuition providers (if they're registered)

Working alongside 30 free hours

Tax-Free Childcare combines beautifully with the 30 free childcare hours scheme for 3-4 year olds in England:

  • 30 free hours covers funded childcare during term time (38 weeks/year)
  • Tax-Free Childcare covers extra hours (above 30/week), holiday weeks, and add-on activities

Most working parents of 3-4 year olds should use both. They are applied for separately at gov.uk/get-tax-free-childcare.

How to apply

  1. Open gov.uk/get-tax-free-childcare
  2. You'll need: your Government Gateway login, National Insurance number(s), your partner's details, your child's birth certificate or passport details
  3. Application takes around 20 minutes
  4. If approved, you'll get a childcare account. Pay in by debit card or bank transfer; HMRC tops up within 24 hours; you then pay your provider direct from the account
Reconfirm every 3 months — or you lose access This is the most common reason people lose Tax-Free Childcare. Every 3 months HMRC asks you to confirm you still qualify. You'll get a reminder email. Click through and confirm within 4 weeks or your account is paused.

If you're better off on Universal Credit Childcare

If you receive Universal Credit, the UC Childcare Element refunds 85% of your childcare costs up to £1,031/month per child. For lower-income families, this is usually better than Tax-Free Childcare. You can only choose one. Check carefully — Citizens Advice (0800 144 8848) and Gingerbread (0808 802 0925) both help calculate which is better for your household.

Tax-Free Childcare — common questions

Who is eligible for Tax-Free Childcare?

You qualify if you (and your partner if you have one) each earn at least £167 a week, neither earns over £100,000 a year, your child is under 11 (under 16 if disabled), and you are not on Universal Credit Childcare Element or Tax Credits. Self-employed parents qualify too.

How much is Tax-Free Childcare worth?

HMRC pays £2 for every £8 you put into your Tax-Free Childcare account, up to £2,000 a year per child, or £4,000 a year if your child is disabled. So if you spend £10,000/year on childcare, the government tops up £2,000.

Can I use Tax-Free Childcare with 30 free hours?

Yes. You can use both together. 30 free hours covers term-time funded childcare for 3-4 year olds in England; Tax-Free Childcare covers extra hours, holiday clubs and after-school clubs.

How do I apply for Tax-Free Childcare?

Apply at gov.uk/get-tax-free-childcare. You will need your details, your partner's details, your child's details and National Insurance number(s). Reconfirm eligibility every 3 months or your account is paused.

Which childcare providers accept Tax-Free Childcare?

Any provider registered with Ofsted (or equivalent in Scotland, Wales, NI) and signed up to the scheme. That includes most nurseries, registered childminders, after-school clubs, holiday clubs and even some football academies.

Sources Tax-Free Childcare · GOV.UK Tax-Free Childcare. Eligibility · Childcare Choices. HMRC childcare account helpline 0300 123 4097 (Mon-Fri 8am-6pm). Last reviewed: May 2026.

Children under 11? Check the whole family.

Sorted's Family hub also covers Child Benefit, 30 free hours, Healthy Start, school grants and SEND support.

Open Family hub