Tax-Free Childcare Calculator

Easily calculate your childcare costs and maximise your
government top-up entitlement each quarter.

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£
£
The child has a disability

Increases government top-up limit from £500 to £1,000 per quarter (£4,000 per year instead of £2,000).

£0.00

Amount You Need to Pay In

Deposit this amount into your Tax-Free Childcare account to receive the government top-up.

£0.00

Government Top-Up

The government adds 20% to your payment, up to your quarterly limit.

£0.00

Remaining Government Allowance

How much more the government can contribute during your current 3-month entitlement period.

Understanding Tax-Free Childcare in the UK

The UK Tax-Free Childcare scheme helps working parents reduce childcare costs. For every £8 you pay into your childcare account, the government adds £2 — giving you a 20% boost towards nursery fees, childminders, after-school clubs and holiday childcare.

Up to £2,000 Per Child

Parents can receive up to £2,000 per child each year. If your child has a disability, the support increases to £4,000 annually.

Paid Every Quarter

The government contribution is capped at £500 every 3 months (£1,000 for disabled children).

Works With Approved Providers

You can use your childcare account to pay registered nurseries, childminders, breakfast clubs and holiday childcare providers.

How Does Tax-Free Childcare Work?

The process is simple and managed online through your Government Gateway account.

1

Apply online through GOV.UK and confirm your eligibility.

2

Open your childcare account and add your provider details.

3

Pay money into your account — the government automatically adds 20%.

4

Use your balance to pay your registered childcare provider directly.

Tax-Free Childcare Eligibility

You May Qualify If:

  • Both parents are working (or one parent in a single-parent household).
  • Each parent earns at least the equivalent of 16 hours per week at minimum wage.
  • Each parent earns under £100,000 per year.
  • Your child is under 12 (or under 17 if disabled).

You Cannot Apply If:

  • You already receive Universal Credit childcare support.
  • You continue to use childcare vouchers.
  • Either parent earns over £100,000 annually.

Free Childcare Hours for Working Parents

30 Hours Free Childcare

Eligible working parents of 3- and 4-year-olds can access up to 30 hours of funded childcare per week during term time. This support reduces the number of paid hours you need to cover.

15 Hours Free Childcare

All 3- and 4-year-olds qualify for 15 funded hours per week. Some 2-year-olds also qualify depending on family income and benefits.

Free Childcare Hours for Working Parents

30 Hours Free Childcare

Eligible working parents of 3- and 4-year-olds can access up to 30 hours of funded childcare per week during term time. This support reduces the number of paid hours you need to cover.

15 Hours Free Childcare

All 3- and 4-year-olds qualify for 15 funded hours per week. Some 2-year-olds also qualify depending on family income and benefits.

Tax-Free Childcare & UK Childcare FAQs

Answers to the most common questions about tax-free childcare UK, free childcare hours, child benefit and child tax credit.

What is a TFC payment?

A TFC payment refers to a payment made into your Tax-Free Childcare account. When you pay money into the account, the UK government automatically adds a 20% top-up. For every £8 you pay, the government adds £2. Parents can receive up to £2,000 per child per year (£4,000 if the child has a disability).

What are the benefits of Tax-Free Childcare?

The main benefit of Tax-Free Childcare in the UK is a 20% government contribution towards childcare costs. It can be used for registered nurseries, childminders, after-school clubs and holiday childcare. The scheme supports working parents and can significantly reduce out-of-pocket nursery fees.

How does Tax-Free Childcare work in the UK?

Parents apply online through their Government Gateway account. Once approved, they open a childcare account on GOV.UK. Parents pay money into the account, and the government adds 20%. The balance is then used to pay an approved childcare provider directly. The government contribution is capped at £500 every 3 months (£1,000 for disabled children).

Who is eligible for free childcare in the UK?

All 3- and 4-year-olds in England are entitled to 15 hours of free childcare per week. Working parents may qualify for 30 hours free childcare. Some 2-year-olds qualify if their parents receive certain benefits or meet income requirements.

How much can a child earn tax-free in the UK?

Children in the UK have the same personal allowance as adults. They can earn up to the annual personal allowance threshold before paying income tax. However, special rules apply to savings given by parents, which may be taxed differently.

Why is nursery not fully free in the UK?

While the UK government provides 15 or 30 funded childcare hours, this funding does not always cover full nursery operating costs. Parents often pay additional fees for meals, extended hours, and care beyond funded sessions.

How much free childcare do you get in the UK?

Eligible families receive either 15 or 30 hours of free childcare per week during term time. From 2024–2025, the government is expanding support to younger children in stages.

Who is eligible for Child Tax Credit in the UK?

Child Tax Credit was designed to support low-income families with children. It has largely been replaced by Universal Credit for new applicants. Existing claimants may still receive payments based on household income and number of children.

How many free childcare hours will families get in 2025?

By September 2025, eligible working parents in England are expected to receive up to 30 funded hours per week from the term after their child turns 9 months old, subject to eligibility criteria.

Is childcare free in the UK for international students?

Eligibility depends on visa status and residency conditions. Many international students are not eligible for certain benefits, but may qualify for funded childcare hours if they meet employment criteria.

Is childcare expensive in the UK?

The UK is considered one of the more expensive countries for childcare. Full-time nursery fees can exceed £1,000 per month depending on location. Government schemes such as Tax-Free Childcare and free hours aim to reduce this burden.

Does every child in the UK receive Child Benefit?

Most families can claim Child Benefit. However, if one parent earns over £50,000, the High Income Child Benefit Charge may reduce or eliminate the benefit.

How much is Child Benefit in the UK?

Child Benefit is paid weekly. The eldest child receives a higher rate, with a slightly lower rate for additional children. Rates are reviewed annually by the government.