Eligibility · Tax-Free Childcare
Am I eligible for Tax-Free Childcare?
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In short. You may qualify if you (and your partner if you have one) expect to earn at least 16 hours a week at National Living Wage and under £100,000 adjusted net income each, your child is under 12 (under 17 if disabled), and you use registered childcare. You cannot claim alongside UC childcare costs or legacy Tax Credits.
Tax-Free Childcare tops up childcare payments by 20% — up to £2,000 per child per year (£4,000 if disabled). Hundreds of thousands of eligible families never open an account. This checker outlines the main rules; confirm on gov.uk before you apply.
Last reviewed:
·Amount: 20% top-up — max £500/quarter per child (£1,000 if disabled)You likely qualify if…
- Your child is under 12, or under 17 if disabled
- You use registered childcare (nursery, childminder, after-school club, etc.)
- Each parent expects to earn at least the equivalent of 16 hours/week at National Living Wage over the next three months
- Each parent's adjusted net income is under £100,000 per year
- You live and work in the UK (with exceptions for Crown servants and armed forces overseas)
- You are not receiving Universal Credit childcare costs, Tax Credits, or childcare vouchers
You likely don't if…
- Either parent expects to earn under the minimum income threshold (unless on leave or starting self-employment)
- Either parent earns £100,000+ adjusted net income
- You claim Universal Credit with childcare costs paid through UC
- You still receive childcare vouchers from an employer scheme (cannot use both for same child)
- Your childcare provider is not registered with Ofsted or equivalent
How to check and claim
- 01Use the childcare calculator at gov.uk/childcare-calculator to compare Tax-Free Childcare with 30 hours free childcare and UC
- 02Open a Tax-Free Childcare account at gov.uk/tax-free-childcare if eligible
- 03Reconfirm eligibility every three months in the account or payments stop
- 04Pay your provider from the childcare account — the 20% government top-up is added automatically
FAQ
- Can self-employed parents claim?
- Yes if you expect to meet the minimum income threshold over the next three months. During very low-income periods you may need to wait until earnings recover.
- How does it work with 30 hours free childcare?
- You can use both — 30 hours is separate funded hours at participating nurseries; Tax-Free Childcare tops up fees you pay for additional hours or wraparound care.
- What if my income is near £100,000?
- Adjusted net income includes pension contributions and gift aid — check the HMRC definition. Going even £1 over loses eligibility for the whole account.