# Tax-Free Childcare calculator

Tax-Free Childcare pays 20% of your childcare bill: for every £8 you pay into your childcare account the government adds £2. The top-up is capped at £500 every 3 months per child (£2,000 a year), or £1,000 (£4,000 a year) for a disabled child, so you get the full 20% on bills up to £2,500 a quarter.

Page: https://toddly.co.uk/tax-free-childcare-calculator (inputs are URL query parameters, so any result can be linked).

## Example: a £1,200 monthly bill

**£500 every 3 months**

You pay £3,100 and the government adds £500 on a £3,600 quarterly bill.

- Bill for 3 months: £1,200 × 3 = £3,600
- 20% top-up: £3,600 × 20% = £720
- Capped at: £500 every 3 months
- Government adds: £500 every 3 months
- You pay in: £3,600 − £500 = £3,100
- A month: you £1,033.33, government £166.67


> Your bill is over £2,500 a quarter, so the top-up is capped at £500.

## Assumptions

- One child. Each child has their own cap; add them up for siblings.
- The bill is what you pay after any funded hours. Tax-Free Childcare can also pay for extras the nursery supplies, such as meals and nappies.
- You must reconfirm your details every 3 months, and cannot claim while getting Universal Credit or childcare vouchers.
- Monthly figures are a third of the quarter, rounded to the penny.

## Next steps

- [Work out the bill first](https://toddly.co.uk/childcare-cost-calculator)
- [Check you are eligible](https://toddly.co.uk/funded-hours-checker)

## Frequently asked questions

### How much can I get from Tax-Free Childcare?

20% of your bill, up to £500 every 3 months per child (£2,000 a year), or £1,000 every 3 months (£4,000 a year) if your child is disabled.

### Can I use Tax-Free Childcare with 30 funded hours?

Yes. Use it for the hours you pay for on top of the funded hours and for extras the nursery provides.

### Does the cap reset every quarter?

Yes, it works in 3-month entitlement periods. Unused top-up in one period does not roll over to the next, although money you have paid in stays in the account.

### Who cannot get Tax-Free Childcare?

Families where either parent expects adjusted net income over £100,000, families claiming Universal Credit or childcare vouchers, and parents not working or earning below the minimum (with some exceptions for carers and people on certain benefits).

## Sources

- Tax-Free Childcare: https://www.gov.uk/tax-free-childcare, checked 11 November 2026