Tax-Free Childcare Calculator UK
Calculate how much you could save with Tax-Free Childcare. Get up to £2,000 per child in government top-ups towards nursery, childminder, and after-school club costs.
What is Tax-Free Childcare?
Tax-Free Childcare is a government scheme where for every £8 you pay into your childcare account, the government adds £2 (a 25% top-up). You can get up to £2,000 per child per year (£500 per quarter), or £4,000 for disabled children.
Who is eligible for Tax-Free Childcare?
Both parents (or single parent) must: be working, earn at least £8,668/year (equiv. of 16hrs at minimum wage), earn under £100,000 each, not receive Tax Credits/Universal Credit/childcare vouchers. Children must be under 12 (or 17 if disabled).
Is Tax-Free Childcare better than Childcare Vouchers?
For most families earning under £100k, Tax-Free Childcare is better. You get up to £2,000/child vs ~£930 max from vouchers. However, if you're on the legacy voucher scheme and have high childcare costs for multiple children, do the maths before switching.
Can I use Tax-Free Childcare with the 15/30 free hours?
Yes! You can use Tax-Free Childcare to pay for additional hours beyond the free 15 or 30 hours, wraparound care, holiday clubs, and before/after school clubs. You just can't use it for hours that are already free.
How do I set up a Tax-Free Childcare account?
Apply through the Childcare Choices website (childcarechoices.gov.uk). You'll need to verify your identity and eligibility. Once approved, you get an online account where you deposit money and the government top-up is added automatically.