Due to You
  • UK-wide
HMRC

Tax-Free Childcare

An HMRC top-up scheme that adds 20p to every 80p paid into a dedicated childcare account, up to £2,000 a year per child (£4,000 for a disabled child), for working parents on moderate incomes.

Headline rate£4,000government top-up (disabled child) (yearly)
Written by Due to You Editorial
Reviewed by D2Y Editorial Team
Last updated (2026-04-20)
Sourced from: GOV.UK

Overview

Tax-Free Childcare is a UK-wide scheme administered by HM Revenue & Customs (HMRC) that provides a 20 percent government top-up on money paid into a dedicated online childcare account, to help working parents with the cost of registered childcare. For every £8 paid in by the parent, the government adds £2, up to a maximum government top-up of £2,000 per child per year, or £4,000 per year if the child has a disability. The account funds can be used to pay any provider signed up to the scheme — which includes most nurseries, registered childminders, nannies employed through an approved agency, and out-of-school clubs. To qualify, the parent (and partner, if any) must be in paid work, or starting work or returning from parental leave, and each must expect to earn at least the equivalent of 16 hours a week at National Minimum Wage over the next three months. Neither parent may have an adjusted net income above £100,000 in the current tax year. Tax-Free Childcare cannot be claimed alongside Universal Credit, tax credits, or childcare vouchers, so parents must compare options before applying. Eligibility is reconfirmed every three months. Individual eligibility and top-up are determined by HMRC. This page references figures and criteria from the primary GOV.UK source; the authoritative source for any individual account remains HMRC.

Applies in UK-wide. Administered by HMRC. This page is general information; contact HMRC for your individual circumstances.

Rates

RateAmountPeriodSource
Government top-up (disabled child)£4,000YEARLY[GOV.UK]
Government top-up (standard child)£2,000YEARLY[GOV.UK]
Top-up rate on contributions£2YEARLY[GOV.UK]

Eligibility criteria include

  • WORK STATUS
    Applicant (and partner, if any) must be working or about to return to work. [GOV.UK]
  • INCOME
    Over the next 3 months the applicant (and partner, if any) must each expect to earn at least the National Minimum Wage for 16 hours a week on average. [GOV.UK]
  • INCOME
    Neither the applicant nor their partner may have an adjusted net income above £100,000. [GOV.UK]
  • AGE
    Child must be aged 11 or younger (or 16 or younger if the child has a disability). [GOV.UK]
  • OTHER
    Tax-Free Childcare cannot be claimed alongside Universal Credit, tax credits or childcare vouchers. [GOV.UK]
  • OTHER
    The childcare provider must be registered with the relevant regulator and signed up to Tax-Free Childcare. [GOV.UK]
  • IMMIGRATION
    Claimant and child must have immigration status that allows access to public funds. [GOV.UK]

Sources