Tax-Free Childcare 2026: Get £500 Every 3 Months — How to Claim

The government's Tax-Free Childcare scheme adds 20p for every 80p you pay toward eligible childcare — up to £2,000/year per child. Millions haven't signed up. Here's the step-by-step guide.

26 April 2026·5 min read

Tax-Free Childcare (TFC) is one of the most generous — and most underutilised — government financial benefits available to working parents. For every 80p you deposit into a Tax-Free Childcare account, the government adds 20p. The maximum government contribution is £500 every 3 months (£2,000/year) per child — or £1,000 per quarter (£4,000/year) for children with disabilities.

How It Works

Open a Tax-Free Childcare account through gov.uk/tax-free-childcare (takes about 20 minutes)
Deposit money into the account (up to £8,000 per year per child)
The government tops up 25% of what you deposit (so your £800 becomes £1,000)
Use the account to pay registered nurseries, childminders, after-school clubs, holiday clubs, and nannies

Who Qualifies?

All parents (or single parents) who are working and earning at least £8,670/year (the equivalent of 16 hours/week at minimum wage)
Neither parent can earn over £100,000/year
Child must be under 11 (or under 17 for children with disabilities)

15 vs 30 Free Hours Childcare

Eligible 3 and 4-year-olds get 15 hours/week of funded childcare. Working parents who meet the earnings criteria can access an additional 15 hours (30 hours total) of funded childcare. These free hours are separate from Tax-Free Childcare and can be used alongside the account for the remaining paid hours.

Frequently Asked Questions

I'm self-employed. Can I use Tax-Free Childcare?

Yes — the scheme is open to employees and self-employed workers equally. You just need to meet the minimum earnings requirement (£8,670 projected annual earnings or equivalent). During business startup periods (first year of trading), HMRC applies relaxed rules.

I'm on Universal Credit. Can I use TFC?

No — you cannot use both Tax-Free Childcare and Universal Credit childcare element at the same time. If you receive UC childcare support (up to 85% of childcare costs), do not also claim TFC for the same childcare. Calculate which is more beneficial using our Childcare Calculator.

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