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Tax-Free Childcare Calculator

Last updated: April 2026

GBP

Ages Of Children

Tax-Free Childcare covers children under 12, or under 17 if disabled.

Eligibility

Are both parents working, or are you a single working parent?

Does either parent earn over GBP 100,000?

Are you claiming UC childcare element?

Tax-Free Childcare

Monthly government top-up

£166.67

Annual government top-up

£2,000.00

Breakdown

Your monthly childcare cost£800.00
You pay into account£800.00
Government adds+£166.67
Total in account£966.67
Net annual saving£2,000.00

You have reached the maximum Tax-Free Childcare top-up for these children.

Free Hours Entitlement

30 hours per week

1140 funded hours per year, using 38 funded weeks.

Estimated annual saving£8,550

This is separate from Tax-Free Childcare. Eligible families can use both.

Comparison

Tax-Free Childcare saves£2,000.00/year
UC childcare covers£8,160.00/year
Better on these figuresUC childcare
Difference£6,160.00/year

Apply for Tax-Free Childcare

Apply through the official GOV.UK childcare account service.

Apply on GOV.UK

What is Tax-Free Childcare?

Tax-Free Childcare is a government scheme where for every 80p you put into a childcare account, the government adds 20p. The maximum top-up is GBP 500 per quarter per child, or GBP 1,000 per quarter for disabled children.

Can I use Tax-Free Childcare and free hours together?

Yes. The 15 or 30 hours of free childcare funded by government is separate from Tax-Free Childcare. Eligible working parents can use both for the same child.

Can I use Tax-Free Childcare and Universal Credit together?

No. You cannot claim Tax-Free Childcare at the same time as the childcare element of Universal Credit. UC childcare can be more generous for lower-income families with high childcare costs.

Related calculators:

- Universal Credit Calculator

- Child Benefit Calculator

- Take Home Pay Calculator

About this calculator

The Tax-Free Childcare Calculator estimates the UK government top-up available through the Tax-Free Childcare scheme. For eligible families, the government adds 20p for every 80p paid into the childcare account, up to the annual limit per child. The calculator helps parents compare childcare costs, top-up value, and whether the scheme may be more useful than older childcare vouchers or other support.

Tax-Free Childcare formula

The top-up is calculated as 25% of the amount the parent pays in, which is equivalent to the government covering 20% of the total childcare account spend.

  • Government top-up = parent contribution x 25%
  • Total childcare account = parent contribution + government top-up
  • Maximum top-up = GBP 2,000 per child per year, or GBP 4,000 for a disabled child

How to use the Tax Free Childcare

  1. Enter the main value or details requested by the calculator.
  2. Check the unit, date, rate, or category selected before calculating.
  3. Review the result and any supporting breakdown shown on the page.
  4. Change one input at a time if you want to compare scenarios.
  5. Keep the result with the source record if you need to refer back to it later.

Worked example

Monthly childcare cost

Input: Parent pays GBP 800 into the childcare account

Calculation: 800 x 25%

Result: Government top-up is GBP 200, giving GBP 1,000 available for childcare.

Planning scenario

Input: A user enters the main details requested by the Tax Free Childcare.

Calculation: Government top-up = parent contribution x 25%

Result: The result gives an estimate that can be checked against source documents, official guidance, or the relevant record.

Eligibility points to check

Eligibility depends on work status, income, child age, childcare provider approval, and whether the family receives other support such as Universal Credit childcare costs or childcare vouchers.

AreaWhat to check
Work requirementParents usually need to be working and earning enough
Income capHigh earners may not qualify
Child ageUsually applies up to age 11, or 16 for disabled children
ProviderThe childcare provider must be approved for the scheme
Other schemesUniversal Credit childcare support and vouchers can affect the choice

Tax-Free Childcare vs childcare vouchers

Childcare vouchers are closed to new entrants but some parents still use them. Vouchers can be better for some lower childcare costs or tax positions, while Tax-Free Childcare can be better where childcare costs are higher or where both parents qualify.

Limitations

This calculator provides an estimate only and is not financial or tax advice.

  • Eligibility depends on official scheme rules and household circumstances.
  • Universal Credit, vouchers, and employer schemes can change the best option.

Frequently asked questions

Is Tax-Free Childcare the same as free childcare hours?

No. It is a childcare account top-up scheme, separate from funded childcare hours.

Can I use it with Universal Credit?

You generally cannot receive Universal Credit childcare costs and Tax-Free Childcare at the same time.

How much can the government add?

Usually up to GBP 2,000 per child per year, or GBP 4,000 for a disabled child.

What should I check before relying on the Tax Free Childcare?

Check the inputs against the source document or real-world record that controls the calculation. For rules-based topics, also check the latest official guidance because thresholds and definitions can change.

Can I use the result as a final decision?

Use the result as an educational estimate and planning aid. It should not replace professional advice, official decisions, lender quotes, medical guidance, legal advice, or tax advice where those apply.

Related calculators

  • Child Benefit Calculator
  • Universal Credit Calculator
  • Take-Home Pay Calculator
  • Student Budget Calculator

What does this mean?

This calculator is designed to help you understand the likely number before you make a decision or start an application.

Your result should be checked against official UK guidance, especially if your circumstances include dependants, exemptions, prior leave, or a complex immigration history.

Treat the figure as a planning tool rather than legal advice. Where the answer affects an application deadline or major payment, speak to an authorised adviser.

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