4. Tax-Free Childcare
You can get up to £500 every 3 months (£2,000 a year) for each of your children to help with the costs of childcare.
If you get Tax-Free Childcare, the government will pay £2 for every £8 you pay your childcare provider via an online account.
You can use it to pay for approved childcare.
If you’ve already registered, you can sign in to your childcare account.
You and your partner
You can usually get Tax-Free Childcare if you (and your partner, if you have one) are:
- in work - or getting parental leave, sick leave or annual leave
- each earning at least the National Minimum Wage or Living Wage for 16 hours a week - this is £120 if you’re over 25
This earnings limit doesn’t apply if you’re self-employed and started your business less than 12 months ago.
If you’re not working, you may still be eligible if your partner is working, and you get Incapacity Benefit, Severe Disablement Allowance, Carer’s Allowance or Employment and Support Allowance.
You’re not eligible if either you or your partner has a taxable income over £100,000.
Your child must be 11 or under and usually live with you. They stop being eligible on 1 September after their 11th birthday.
Adopted children are eligible, but foster children are not.
If your child is disabled you may get up to £4,000 a year until they’re 17. They’re eligible for this if they:
- get Disability Living Allowance, Personal Independence Payment or Armed Forces Independence Payment
- are registered as blind or severely sight-impaired
Your childcare provider
Your childcare provider must be signed up to the scheme before you can pay them and benefit from Tax-Free Childcare.
Check with your provider to see if they’re signed up.
If you get tax credits, Universal Credit or childcare vouchers
You can’t get Tax-Free Childcare at the same time as claiming Working Tax Credit, Child Tax Credit, Universal Credit or childcare vouchers.
Which scheme you’re better off with depends on your situation. Use the childcare calculator to work out which type of support is best for you.
When support will stop
If you successfully apply for Tax-Free Childcare:
- Working Tax Credit or Child Tax Credit stops straight away
- childcare vouchers can continue for up to 90 days
You should apply for Tax-Free Childcare before cancelling your Universal Credit claim.
When to apply
You can usually apply now if your child was born on or after 24 November 2011, or is disabled.
If your child is older, you can get an email when you can apply.
You can make a payment the day after you put money in your account. It usually takes 3 working days for the money to reach your provider’s account.
If you’re not currently working
You must wait until 31 days before you start or re-start work to apply for Tax-Free Childcare.
If you’re on parental leave, you can apply now if you have children born on or after 24 November 2011 that you’re not on leave for.
Apply for Tax-Free Childcare
You’ll need your details (and your partner’s, if you have one), including your:
- National Insurance number
- Unique Taxpayer Reference (UTR), if you’re self-employed
It takes 20 minutes to apply.
As part of your application, you’ll find out if you’re eligible for both Tax-Free Childcare and 30 hours free childcare. You may find out straight away, but it can take up to 7 days.