Calculate your Tax-Free Childcare top-up. Find how much the government adds to your childcare account and whether you qualify for the scheme.
Tax-Free Childcare (TFC) is a government scheme where for every 80p you put into an online childcare account (opened at childcare.gov.uk), the government adds 20p — giving you £1 of childcare credit. This is effectively a 20% top-up on childcare costs, up to a maximum government contribution of £2,000 per child per year (£4,000 for disabled children). You can spend the credit with OFSTED-registered childcare providers.
Both parents must be working (or self-employed) and each earning at least £1,000 per quarter (roughly the National Minimum Wage for 16 hours/week). Neither parent can earn over £100,000 in the tax year. The child must be under 12 (or under 16 if disabled). Self-employed parents qualify even in the first year of business. Parents on certain benefits (Tax Credits, Universal Credit) cannot use TFC simultaneously.
The government tops up a maximum of £500 per quarter (£2,000 per year) per child. This means you need to spend £8,000 per year on childcare per child to receive the full top-up. For disabled children, the maximum is £1,000 per quarter (£4,000/year), requiring £16,000 of childcare spend. There is no minimum spend — any amount earns proportional top-up.
Yes — Tax-Free Childcare can be used alongside the 15 hours (all 3-4 year olds) or 30 hours (eligible working parents) of free childcare entitlement. The free hours reduce your paid childcare bill, and TFC tops up what remains. You cannot use TFC simultaneously with tax credits (including Universal Credit childcare element) — you must choose one scheme.
The legacy childcare voucher scheme is closed to new applicants. If you are still on the old scheme, it may be worth comparing: vouchers gave basic rate taxpayers a saving of up to £933/year on childcare costs via NI/tax relief; TFC gives a 20% top-up up to £2,000/year per child regardless of tax rate. Higher-rate taxpayers with one child are generally better off with TFC. Families with multiple children always prefer TFC.