Working Tax Credit Childcare Element Calculator 2026
Calculate the childcare element of Working Tax Credit. Up to 70% of childcare costs, max £175/week (1 child) or £300/week (2+ children). Closing to new claims.
WTC Childcare Element Calculator
Frequently Asked Questions
What is the WTC childcare element?
The childcare element of Working Tax Credit covers 70% of eligible childcare costs, up to £175/week for 1 child (£122.50 credit) or £300/week for 2+ children (£210 credit).
Is WTC still available for new claims?
No — Tax Credits (including WTC) are closed to new claims. Existing claimants are being migrated to Universal Credit. New claims go via UC.
How does Universal Credit childcare compare?
UC covers 85% of childcare costs, up to £1,014.63/month for 1 child and £1,739.37/month for 2+ children (2025/26). This is more generous than WTC's 70%.
What childcare counts for WTC?
Registered/approved childcare providers including nurseries, childminders, after-school clubs, breakfast clubs, and holiday playschemes. Home-based nannies only if OFSTED registered.
Do both parents need to work?
For couples, both must work 16+ hours/week. Single parents must work 16+ hours/week. Hours can combine employed and self-employed.
How is WTC childcare paid?
As part of your weekly or 4-weekly Tax Credit payment. You report childcare costs to HMRC and the childcare element is included in your payment.
What age children qualify?
Children up to the September after their 15th birthday (or 16th birthday if disabled).
Can I get WTC and Tax-Free Childcare?
No — you cannot use the childcare element of Tax Credits AND Tax-Free Childcare (TFC) at the same time. Generally UC is more beneficial for lower earners; TFC for higher earners.
Does term-time only childcare affect WTC?
If childcare varies week to week, you can use annual averages. HMRC should be notified when costs change significantly.
What happens when I move to UC?
When HMRC sends a migration notice, you must claim UC within 3 months. Your WTC entitlement stops. Check your UC entitlement before moving — in some cases WTC may be higher.
Does grandparent childcare count?
No — care by immediate family members (grandparents, aunts, uncles) is not eligible childcare for WTC purposes, even if they are a registered childminder.
How do I report childcare cost changes?
Notify HMRC Tax Credits helpline (0345 300 3900) of significant changes (over £10/week) within 1 month. Failure to report can result in overpayments.