UK Tax-Free Childcare on Yearly Cost Calculator

Save up to £2,000 per child with the UK Government’s Tax-Free Childcare Scheme.

Are you a working parent in the UK wondering how much you could save on childcare costs? Our Tax-Free Childcare Calculator helps you quickly estimate your potential savings under the government’s Tax-Free Childcare scheme.

How the Tax-Free Childcare Scheme Works?

The UK Tax-Free Childcare scheme is designed to help working parents with children under 12 (or under 17 for children with disabilities) manage their childcare costs. Here’s how it works:

• For every £8 you pay into your Tax-Free Childcare account, the government adds £2
• This effectively gives you a 20% discount on your childcare costs
• You can receive up to £2,000 per child per year (or £4,000 for disabled children)
• The money can be used to pay for approved childcare providers including nurseries, childminders, and after-school clubs

How Our Calculator Works?

Our Tax-Free Childcare Calculator makes it simple to understand your potential savings:

1. Select the number of eligible children you have (up to 5)
2. Enter the yearly childcare cost for each child
3. Click “Calculate Your Savings” to see your results
4. View your estimated annual savings broken down per child and in total

The calculator automatically applies the 20% government contribution rate and respects the maximum annual contribution limit of £2,000 per child (£4,000 for disabled children).

Am I Eligible for Tax-Free Childcare?

To qualify for Tax-Free Childcare, you need to meet certain criteria:

• Your child must be under 12 (or under 17 if disabled)
• Both parents must be working (or one parent in single-parent families)
• Each parent must earn at least the National Minimum Wage or Living Wage for 16 hours a week on average
• Neither parent can have an adjusted net income over £100,000 per year
• The childcare provider must be registered with a regulator such as Ofsted

Maximizing Your Tax-Free Childcare Benefits

To get the most from the scheme:

• Calculate your yearly childcare costs accurately using our calculator
• Set up regular payments into your Tax-Free Childcare account
• Ensure your childcare provider is registered with the scheme
• Combine with other support such as free childcare hours if eligible

Why Use Our Tax-Free Childcare Calculator?

• Quick and easy to use with instant results
• Accurate calculations based on current government guidelines
• Clear breakdown of potential savings for each child
• Mobile-friendly design so you can calculate on the go
• No personal data required – everything is calculated in your browser

Start Saving on Your Childcare Costs Today

Don’t miss out on potential savings of up to £2,000 per child per year. Use our calculator above to see how much you could save with Tax-Free Childcare, then visit the official GOV.UK Tax-Free Childcare page to set up your account.

FAQs About Tax-Free Childcare

Can I use Tax-Free Childcare alongside other childcare support?

You cannot use Tax-Free Childcare at the same time as claiming Working Tax Credit, Child Tax Credit, Universal Credit, or childcare vouchers. However, you can use it alongside the 15 or 30 hours of free childcare.

How do I pay my childcare provider through the scheme?

Once you’ve set up a Tax-Free Childcare account, you can make payments to your registered childcare provider directly through your online account.

What if my childcare costs change during the year?

You can add money to your account whenever you need to, and the government will add the 20% top-up up to the maximum amount. If your costs decrease, you can withdraw money, but the government top-up will be withdrawn proportionally.

Can I use Tax-Free Childcare for school fees?

No, Tax-Free Childcare can only be used to pay for registered childcare, not for private school fees or tuition.

---

Disclaimer: This calculator provides estimates based on current Tax-Free Childcare rules. Eligibility criteria apply. Always check the official GOV.UK website for the most up-to-date information.