Small Business Accountants

How do I receive tax free childcare?

Tax-Free Childcare is a UK government scheme that tops up working parents' childcare payments by £2 for every £8 paid, up to £2,000 per child per year (£4,000 for disabled children). Both parents must be working and earning at least the National Minimum Wage equivalent of 16 hours per week, with neither earning over £100,000. Parents apply through the government's childcare service and must reconfirm eligibility every three months.

By Jordan Macey MAAT Reviewed by Noor Fiaz Updated 16 Apr 2026 1

How do I receive tax free childcare? - GoForma Tax Guides | UK Accountants & Tax Advisors

Key takeaways

The government adds £2 for every £8 a parent pays into their Tax-Free Childcare account, giving a maximum top-up of £500 per quarter or £2,000 per year per child. For disabled children the annual cap doubles to £4,000.
Both parents must be in work and each must earn at least the National Minimum Wage equivalent for 16 hours per week. Neither parent can have an adjusted net income above £100,000 in the current tax year.
Children are eligible from birth until 11 years old, or until 17 years old if the child has a disability. The account stays open until September after the child reaches the upper age limit.
Parents must reconfirm their eligibility every three months through their online childcare account. Missing the reconfirmation deadline means government top-up payments stop until details are updated and verified.
Tax-Free Childcare replaced the employer-supported childcare voucher scheme, which closed to new entrants in October 2018. Parents already receiving vouchers can continue but cannot hold both at the same time.

To get tax-free childcare, you need to:

Check your eligibility for tax-free childcare
Check if it’s the right option for you
Apply online for tax-free childcare
Sign in to your account to make payments to your childcare provider
Sign in to your account to reconfirm that your details every three months

Frequently asked questions

What is Tax-Free Childcare and how does it work?

Tax-Free Childcare is a UK government scheme that helps working parents pay for registered childcare. You open an online childcare account and for every £8 you pay in, the government adds £2. The money can be used to pay any Ofsted-registered childminder, nursery, nanny, after-school club or other approved childcare provider directly from the account.

Who is eligible for Tax-Free Childcare?

Both parents must be working (or one parent if single) and each must earn at least the National Minimum Wage equivalent of 16 hours per week. Neither parent can earn more than £100,000 adjusted net income per year. You cannot claim if you already receive Tax Credits, Universal Credit or childcare vouchers through your employer at the same time.

How much does the government pay towards Tax-Free Childcare?

The government tops up your childcare account by £2 for every £8 you deposit, up to a maximum of £500 per quarter per child. That gives a yearly top-up of £2,000 per child. If your child is disabled, the quarterly cap rises to £1,000, providing up to £4,000 per year per child in government contributions.

How do I apply for Tax-Free Childcare?

You apply online through the government's childcare service at gov.uk. You will need your National Insurance number, a valid UK passport or identity document, and your most recent Self Assessment or employment details. Once approved, you receive an online childcare account where you deposit money and the government automatically adds the top-up.

What are the age limits for Tax-Free Childcare?

Your child must be under 12 years old to qualify. The account remains open until the September after your child turns 11. If your child has a disability and receives Disability Living Allowance, the upper age limit extends to 17 and the account stays open until September after they turn 16.

Can self-employed parents claim Tax-Free Childcare?

Yes, self-employed parents can claim as long as they meet the same income requirements. Each self-employed parent must expect to earn at least the National Minimum Wage equivalent of 16 hours per week over the coming three months. If you have recently started your business, you may be eligible for a 12-month start-up grace period during which the minimum income rule does not apply.

How often do I need to reconfirm my eligibility?

You must reconfirm your eligibility every three months through your online childcare account. HMRC sends a reminder before the deadline. If you do not reconfirm on time, the government stops adding top-up payments to your account. You can reconfirm and restart payments once you update your details, but no back-payments are made for the missed period.

What is the difference between Tax-Free Childcare and 30 hours free childcare?

Tax-Free Childcare provides a financial top-up towards the cost of any registered childcare from birth to age 11. The 30 hours free childcare scheme offers 30 hours of funded early education per week during term time for three and four year olds. Eligible parents can use both schemes together, but cannot use Tax-Free Childcare to pay for the hours already covered by the free entitlement.

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