Tax-Free Childcare
A government scheme that adds £2 for every £8 you pay into an online childcare account, up to £500 every 3 months per child
By The Toddly editorial team · Last updated 11 November 2026
Tax-Free Childcare is run by HMRC. You open a childcare account, pay money in, and the government adds £2 for every £8, which is 20% of the bill. The top-up is capped at £500 every 3 months (£2,000 a year) per child, or £1,000 every 3 months (£4,000 a year) for a disabled child. You usually need to be working and earning at least the minimum-wage equivalent of 16 hours a week, and neither parent can expect adjusted net income over £100,000. You cannot use it while claiming Universal Credit. Try our Tax-Free Childcare calculator.