Frequently asked questions
How much is Tax-Free Childcare worth?
The government adds £2 for every £8 you pay into your childcare account, up to £500 every three months for each child, or £2,000 a year. For a disabled child, the caps double: £1,000 every three months, or £4,000 a year. To get the full quarterly top-up, you need to pay £2,000 of your own money into the account in that quarter (£5,000 for a disabled child).
How old must my child be?
Your child is eligible until the September after they turn 11. If your child is disabled, eligibility runs until the September after they turn 16, and the child must be certified as blind or severely sight-impaired, or receive Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment, Child Disability Payment, or Adult Disability Payment.
What if I earn over £100,000?
If either parent expects adjusted net income over £100,000 in the tax year, the family does not qualify at all — the cap is a cliff edge, not a taper. Adjusted net income includes bonuses, dividends, savings interest, rental profit, and foreign income, minus pension contributions and Gift Aid. Two parents each earning £99,000 can qualify; one parent earning £101,000 means the family cannot, even if the other parent earns nothing.
Can I use it with funded childcare hours?
Yes. Funded hours reduce the hours you pay for, and Tax-Free Childcare reduces the cost of the hours you do pay for, plus extras such as meals and trips supplied by the provider. In England, the same application checks both schemes.
Can I use it with Universal Credit?
No, not for the same child. Universal Credit childcare support refunds up to 85% of costs, which usually beats the 20% top-up for lower-income families, but you must choose one or the other. Use the government's childcare calculator to compare, and do not cancel Universal Credit until you have a Tax-Free Childcare decision.
I am self-employed with irregular income. Can I qualify?
Yes. If you started your business less than 12 months ago, the minimum earnings test does not apply at all. After that, you can average your expected earnings over the tax year instead of the next three months, and if you have more than one job, you can use your total earnings. Dividends, interest, property income, and pension income do not count towards the minimum.
What happens if I forget to reconfirm?
Your top-ups stop until you sign in and reconfirm. Reconfirming restarts them; you do not need to reapply. Set a recurring reminder for your reconfirmation week, because this is the most common avoidable reason for lost top-ups.
Can I pay a grandparent or unregistered babysitter?
No. The provider must be approved and registered — a registered childminder, nanny, nursery, club, or school, or a home care worker with a registered agency. Informal care, however good, does not count.
What if my childcare provider is not signed up?
Send them a nudge notification from inside your childcare account, and talk to them directly. Most providers join readily. Do not pay them from the account until they are linked.
What if HMRC refuses my application?
Ask HMRC for a review of the decision first. If the review does not resolve it, you can appeal to the Social Security and Child Support Tribunal using form SSCS5. Take advice from Citizens Advice or a law centre before appealing.
Sources: GOV.UK, Tax-Free Childcare; Best Start in Life, How Tax-Free Childcare works; HMRC Tax-Free Childcare technical manual; Childcare Payments Act 2014.