Childcare Tax Calculator
Estimate how Tax-Free Childcare and funded childcare hours could reduce your nursery, childminder or wraparound care bill. The calculator shows the government top-up, the value of free hours where they can be estimated, and the practical eligibility warnings that catch many families out.
Estimate childcare support
Enter the provider bill before Tax-Free Childcare. For funded hours, add an hourly rate so the calculator can estimate the bill reduction.
England is estimated automatically. Scotland, Wales and Northern Ireland need the free-hours override for a cash-value estimate.
You
Partner
Tax-Free Childcare rate
20%
The top-up is one fifth of the provider bill paid through the account, subject to the cap.
Standard annual cap
GBP 2,000
Per child per year. The disabled-child cap is GBP 4,000.
England working-parent hours
1,140
30 hours a week for 38 weeks, or fewer hours stretched over more weeks if the provider offers it.
What this childcare calculator is for
Childcare support is useful, but it is rarely as simple as "30 free hours" or "20% off". A nursery invoice might include funded hours, paid extra hours, meals, nappies, consumables, late pick-up charges and holiday sessions. Tax-Free Childcare then works on the eligible paid childcare you run through the childcare account, not on costs already covered by funded hours.
This calculator therefore separates the two stages. First it estimates the annual bill before help, then it subtracts the value of funded hours where that can be reasonably estimated. It then applies the Tax-Free Childcare top-up to the remaining eligible bill, subject to the per-child cap.
It is most useful for parents comparing nursery places, planning the move back to work, or trying to make a London-style monthly childcare bill feel less mysterious. It can also help if you are choosing between Tax-Free Childcare and another route such as Universal Credit childcare costs or an old employer childcare voucher scheme.
| Support type | What it reduces |
|---|---|
| Funded hours | Childcare hours at an approved provider, subject to local and provider rules. |
| Tax-Free Childcare | The remaining eligible childcare bill paid through your childcare account. |
| Extras | Meals, nappies, trips and extra sessions may still be charged by your provider. |
How funded childcare differs across the UK
England
Working parents can get 30 hours a week from 9 months to 4 years if the work, income and immigration rules are met. All 3 and 4 year olds also have a universal 15 hours a week entitlement.
Scotland
Scotland offers 1,140 funded early learning and childcare hours for all 3 and 4 year olds and eligible 2 year olds. Tax-Free Childcare can still apply to eligible paid childcare.
Wales
The Childcare Offer for Wales can provide up to 30 hours of combined nursery education and childcare for eligible 3 and 4 year olds, for up to 48 weeks.
Northern Ireland
Northern Ireland has funded pre-school education places in the year before primary school, with part-time and some full-time provision. The provider and admissions route matter.
The calculator estimates England automatically because the current GOV.UK working-parent entitlement is the most common search intent for "30 hours". For Scotland, Wales and Northern Ireland it gives a practical funding note and lets you override the weekly free hours once you know your local entitlement.
How this calculator works
Inputs used
- Tax year, because minimum wage rates used for the working-parent earnings test change each April.
- Country, household type, number of children, number of disabled children and youngest child age.
- Childcare bill and whether the amount entered is weekly, monthly or annual.
- Hourly childcare rate and funded-hours pattern, with an optional manual funded-hours override.
- Each parent or partner's working status, minimum wage age band, expected adjusted net income and expected earnings over the next 3 months.
- Whether the household is using Universal Credit childcare support or employer childcare vouchers.
Calculation method
- Convert the childcare bill to an annual amount.
- Check the key Tax-Free Childcare blockers: age, working status, minimum earnings, GBP 100,000 income cap, Universal Credit and childcare vouchers.
- Estimate funded hours. England is calculated automatically; Scotland, Wales and Northern Ireland are signposted unless the user enters an override.
- Subtract the estimated value of funded hours from the annual bill, without letting the supported bill go below zero.
- Apply the Tax-Free Childcare top-up as 20% of the remaining eligible bill, capped at GBP 2,000 per standard child and GBP 4,000 per disabled child.
- Show the estimated parent-paid cost after funded hours and Tax-Free Childcare, plus notes on eligibility and limitations.
Assumptions
- The bill entered is for approved childcare and is eligible to be paid through a childcare account unless a warning says otherwise.
- The calculator uses the current England working-parent rule of 30 hours for eligible children aged 9 months to 4 years over 38 weeks.
- The minimum earnings test is modelled as 16 hours a week for 13 weeks at the selected tax year's National Minimum Wage or National Living Wage rate.
- For all-child calculations, the youngest child age is used for funded-hours eligibility; use the manual override for mixed ages.
- Tax-Free Childcare age eligibility is simplified to an age-in-months check; the official rule runs until the September after the child turns 11, or 16 for eligible disabled children.
- Provider hourly rate is used only to estimate the cash value of funded hours. Actual invoices can handle funded hours differently.
What this does not cover
- It does not apply for childcare support or validate a childcare provider account. Use the official Tax-Free Childcare application service and check your provider is approved.
- It does not calculate Universal Credit childcare costs, student childcare grants or every local-authority funded-hours rule.
- It does not decide immigration status, foster-care rules, SEN support, or whether a particular provider will offer stretched hours. For casual childcare income instead, use the Babysitter Tax Calculator.
Worked example
Say a couple in England have one 3-year-old in nursery. The bill is GBP 1,200 a month before support and the provider charges GBP 7.50 an hour. Both parents work, both are below the GBP 100,000 adjusted-net-income cap, and they are not using Universal Credit childcare costs or childcare vouchers.
The annual bill before support is GBP 14,400. Thirty funded hours over 38 weeks is 1,140 hours. At GBP 7.50 an hour, that is an estimated funded-hours value of GBP 8,550. The remaining eligible bill is GBP 5,850.
Tax-Free Childcare can then top up 20% of that remaining bill, which is GBP 1,170. The estimated parent-paid cost after funded hours and top-up is GBP 4,680 for the year, or about GBP 390 a month. Real nursery invoices may still include meals, consumables and additional sessions, so this is a planning estimate rather than a promise of the exact direct debit.
Common mistakes
The first mistake is treating "free hours" as a whole free day. Funded hours normally cover childcare hours, not every extra on the invoice. Ask your provider how they charge for meals, nappies, trips, consumables and non-funded hours.
The second is missing the three-month reconfirmation. GOV.UK says you must sign in to your childcare account every 3 months to confirm your details are still up to date. It is dull admin, but missing it can disrupt your code.
The third is forgetting that the GBP 100,000 cap applies to each parent or partner separately. A household with two parents earning GBP 95,000 each may pass that cap; a household with one parent over GBP 100,000 will normally fail it for Tax-Free Childcare and England working-parent hours.
What to check with your childcare provider
Are they approved?
Tax-Free Childcare and funded hours only work with approved childcare. The registration body differs across the UK.
Do they stretch hours?
Some providers let you use fewer funded hours across more weeks. Others operate the term-time pattern only.
What extras remain?
Meals, consumables and extra sessions can remain payable even when the childcare place includes funded hours.
Childcare tax FAQs
Can I get Tax-Free Childcare and 30 hours free childcare?
What costs are not covered by free childcare hours?
What if one parent is not working?
How often must I reconfirm?
Is Universal Credit better than Tax-Free Childcare?
Official sources
Last verified: May 8 2026. Calculations are estimates based on the published rules and assumptions shown on this page.
- GOV.UK Tax-Free Childcare - GBP 2 top-up for every GBP 8 paid, quarterly and annual caps, disabled-child cap and account rules
- GOV.UK Tax-Free Childcare eligibility - child age, working status, income cap, Universal Credit and childcare-voucher restrictions
- GOV.UK Free Childcare for Working Parents - England working-parent entitlement, reconfirmation and application route
- GOV.UK Free Childcare for Working Parents - what you get - 30 hours for eligible children aged 9 months to 4 years over 38 weeks, stretched-hours note and extras
- GOV.UK approved childcare - approved childcare provider rules and country-specific registration routes
- GOV.WALES Childcare Offer for Wales - Wales 30 hours combined childcare and nursery education for eligible 3 and 4 year olds
- Scottish Government funded early learning and childcare - Scotland 1,140 funded hours for all 3 and 4 year olds and eligible 2 year olds
- GOV.UK National Minimum Wage rates - current age-based minimum wage rates used for the working-parent minimum earnings test
- GOV.UK Low Pay Commission 2025 rates - April 2025 minimum wage rates used for 2025/26 comparisons
- nidirect pre-school education places - Northern Ireland funded pre-school education place rules and application route