Through the Tax-Free Childcare scheme, you could receive up to £500 every 3 months (£2,000 a year) per child to help cover childcare costs. For children with disabilities, this amount increases to £1,000 every 3 months (£4,000 a year).

For every £8 you add to your childcare account, the Government will contribute an extra £2. Payments are made directly through the secure online childcare account you create for your child.

If you qualify, you can use Tax-Free Childcare alongside the 15 or 30 hours of free childcare scheme.

You may qualify for Tax-Free Childcare depending on:

• Your work status (employed, self-employed, or a company director)
• Your income and, if applicable, your partner’s income
• Your child’s age and circumstances
• Your immigration status

If You’re Working

You can usually claim if you (and your partner, if you have one) are:

• In employment or self-employment
• On sick leave or annual leave
• On shared parental, maternity, paternity, or adoption leave and returning to work within 31 days of applying

If You’re Not Currently Working

You might still be eligible if your partner works and you receive one of the following:

• Incapacity Benefit
• Severe Disablement Allowance
• Carer’s Allowance (or Carer Support Payment in Scotland)
• Contribution-based Employment and Support Allowance

You can also apply if you’re due to start or restart work within 31 days.

Income Requirements

Over the next 3 months, you and your partner (if applicable) must each expect to earn at least:

• £2,379 if aged 21 or over
• £1,788 if aged 18 to 20
• £1,331 if under 18 or an apprentice

This is based on the National Minimum or Living Wage for an average of 16 hours per week.

You can use your yearly average income if:

• You work all year but don’t receive regular pay
• You’re self-employed and won’t meet the 3-month income threshold

Example: If you’re 21 or over and earn £9,518 annually without regular pay, this averages to £2,379 every 3 months, meeting the requirement.

If you’ve been self-employed for less than 12 months, you may still qualify even if you earn less.

If you have multiple jobs, your total earnings can be combined, including income from employment and self-employment.

Income that doesn’t count towards eligibility includes:

• Dividends
• Interest from savings
• Income from property investments
• Pension payments

If you or your partner have an ‘adjusted net income’ over £100,000 in the current tax year, you won’t be eligible.

Your Child

Your child must be 11 or under and normally live with you. They stop being eligible on 1 September after their 11th birthday.

Adopted children qualify, but foster children do not.

If your child is disabled and lives with you, you may receive up to £4,000 a year until 1 September after their 16th birthday, provided they:

• Receive Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment, Child Disability Payment (Scotland) or Adult Disability Payment (Scotland)
• Are certified as blind or severely sight impaired

Immigration Status

To qualify, you must have a National Insurance number and one of the following:

• British or Irish citizenship
• Settled or pre-settled status (or have applied and are awaiting a decision)
• Permission to access public funds (shown on your UK residence card)

If you have a partner, they must also have a National Insurance number.

If you live in an EU country, Switzerland, Norway, Iceland, or Liechtenstein, you or your partner may still qualify if:

• Your work is in the UK
• You started the job before 1 January 2021
• You’ve worked in the UK at least once every 12 months since starting

This is called being a ‘frontier worker’. You’ll need to show your Frontier Worker permit when applying.