Tax-Free Childcare — Government Pays 20% (up to £2,000/Child a Year)

Overview

Tax-Free Childcare is for working parents — the government pays 20% of your childcare costs. For every £8 you pay into an online childcare account, the government adds £2, up to £500 every 3 months (£2,000 a year) per child, or £4,000 a year if your child is disabled. It covers registered nurseries, childminders, after-school clubs and holiday camps.

How to Claim

1. Click the link on this page to open the official GOV.UK Tax-Free Childcare page and apply (you'll need your details and your child's).
2. Once approved, open your online childcare account.
3. Pay money in — the government automatically adds 20%.
4. Pay your registered childcare provider straight from the account.

Requirements

• You (and your partner, if you have one) are in work, each expecting to earn at least £2,643.68 over the next 3 months if aged 21+ (about £10,575 a year — 16 hours a week at the National Living Wage). Lower thresholds apply if you're under 21 or an apprentice, and the newly self-employed are exempt for 12 months.
• Neither of you has adjusted net income over £100,000.
• Your child is eligible until the September after they turn 11 (or 16 if disabled).
• Your childcare provider is signed up to the scheme.

Important Terms

• Maximum top-up £500 per quarter (£2,000/year) per child; £1,000 per quarter (£4,000/year) if disabled.
• You can't use it at the same time as Universal Credit or childcare vouchers — use the GOV.UK childcare calculator to check which is better for you.
• You reconfirm your details every 3 months.

Tips

• Most nurseries, childminders and many holiday/after-school clubs accept it — check yours is signed up.
• If you also qualify for free childcare hours, you can use both together.
• Apply directly on GOV.UK — it's free.