Tax-Free Childcare 2025 — £2,000/year per child UK guide

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

Yes. You can use both schemes 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.

Q: 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 (if you have one), your child's details and National Insurance number(s). You set up a childcare account online. Reconfirm eligibility every 3 months — that's the main reason people lose access.

Q: Which childcare providers accept Tax-Free Childcare?

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

Get your Tax-Free Childcare set up

Sorted gathers your details and a what-to-have-ready checklist, then links you straight to the official GOV.UK account.

Prepare & submit →

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

Open gov.uk/get-tax-free-childcare
You'll need: your Government Gateway login, National Insurance number(s), your partner's details, your child's birth certificate or passport details
Application takes around 20 minutes
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 £1,071/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.

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