Disabled children qualify for a higher top-up of up to £4,000/year.
Reg. 07380272 · England & Wales · Est. 2010
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| Child | Quarterly Cost | Quarterly Top-Up | Annual Top-Up |
|---|---|---|---|
| Child 1 | £2,000.00 | £400.00 | £1,600.00 |
Parent 1 Income: £35,000.00
Within eligible range
Parent 2 Income: £30,000.00
Within eligible range
Eligible income range
£8,670 – £100,000
Each working parent must earn within this range per year.
Gov. contribution rate
20%
£2 for every £8 you pay in
Max per child / year
£2,000
£4,000 if disabled
Everything you need to know about Tax-Free Childcare in the UK
How does Tax-Free Childcare work?
Tax-Free Childcare is a government scheme where for every £8 you pay into your childcare account, the government adds £2 — a 20% top-up. You open an online account through GOV.UK, deposit money to pay your childcare provider, and the government automatically tops up your deposits. The maximum government contribution is £2,000 per child per year (£500 per quarter), or £4,000 per year (£1,000 per quarter) for disabled children. You can use the account to pay any Ofsted-registered childcare provider.
What are the maximum amounts?
The government will top up a maximum of £2,000 per child per year, which means you need to spend £10,000 per year on childcare per child to get the full benefit. This works out to £500 per quarter. For disabled children, the maximum is doubled to £4,000 per year (£1,000 per quarter). Unused top-up does not roll over between quarters — each quarter has its own cap.
Who is eligible?
Both parents (or the sole parent in a single-parent household) must be working and each earn at least £8,670 per year (equivalent to 16 hours a week at National Minimum Wage) and no more than £100,000 per year adjusted net income. You cannot claim Tax-Free Childcare if you or your partner receive certain benefits like tax credits, Universal Credit, or childcare vouchers. The child must be 11 or under (or 16 if disabled) and not in full-time local authority care.
Can I use it with free hours?
Yes, you can use Tax-Free Childcare alongside the 15 or 30 hours of free childcare entitlement. The Tax-Free Childcare account can be used to pay for any hours beyond your free entitlement, as well as for additional costs such as holiday clubs, breakfast clubs, and after-school care. However, you cannot use Tax-Free Childcare at the same time as childcare vouchers or Universal Credit childcare support — you must choose one scheme.
HMRC-Aligned: This calculator uses official HMRC rates and thresholds for the 2025/26 tax year (6 April 2025 – 5 April 2026). Results are indicative — for complex situations, consult a qualified adviser or visit GOV.UK Childcare Choices.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms