So, you’ve secured a nursery place for your wee one? Amazing!
Now’s the moment to set up your Tax‐Free Childcare account before that first invoice lands. Spend 20 minutes online, get an instant 20 % top‐up on every £1 you pay toward approved childcare — up to £2,000 a year per child (or £4,000 if they’redisabled). Ready?
Before you go any further - are you eligible?
You and your partner (if you have one) must:
| Criteria | Rules | Notes |
|---|---|---|
| Work & earn | Expect to earn at least the equivalent of 16 hours a week at the National Minimum/Living Wage over the next 3 months (≈ £2,539 if you’re 21+, £2,080 if 18-20, £1,570 if under-18/apprentice). | Freelancers can average income across the tax year. New businesses trading < 12 months are exempt from the minimum. |
| Income cap | Earn less than £100,000 adjusted-net income each in the current tax year. | If one parent tips over £100k, the whole family becomes ineligible. |
| Child’s age | Aged 0-11 (or 0-16 if disabled). Eligibility ends 1 September after their 11th/16th birthday. | |
| Immigration status | Have a valid NI number and (if relevant) permission to work in the UK | |
| Benefit clash | You can’t claim Childcare Vouchers or UC Childcare at the same time. |
Full rules: GOV.UK – Check you’re eligible
You’re eligible? Great - this is what you’ll need
| Document / detail | Why it’s needed |
|---|---|
| Your National Insurance number (and your partner’s) | Confirms identity & work status |
| Unique Taxpayer Reference (UTR) if self-employed | Links to HMRC records |
| UK birth-certificate reference for each child (if you have it) | Confirms parental responsibility |
| Estimated earnings for the upcoming 3 months | Checks the minimum-earnings test |
| Date you started (or will start) work | Needed if your job is new |
| Childcare provider details – name, postcode, regulator registration number | To link / make payments |
| Government Gateway user ID & password | You’ll create one (or sign in) during the process |
Tip: Have your partner nearby — you’ll each need to answer security questions.
Step‐by‐step: open your account
- Create / sign in to Government Gateway
- Go to Apply for Tax‐Free Childcare and choose Start now.
- Verify your identity (passport, payslip or P60 details usually work).
- Complete the joint application
- One form covers Tax‐Free Childcare and 30‐hours free childcare (if you live in England).
- Answer the eligibility questions for you, your partner and each child.
- Receive instant decision
- Most parents get approved on the final screen. If HMRC needs extra checks they’ll email within 7 days.
- Set up your Childcare Account
- Add each child; HMRC issues a unique reference for every child.
- Link your childcare provider by searching their regulator ID or postcode.
- Deposit money
- Pay in via debit card, standing order or faster payments.
- HMRC tops up £2 for every £8 within minutes.
- Send payments to your provider straight from the account.
- Re‐confirm every 3 months
- HMRC emails a reminder — log in, check your details and click confirm (takes < 2 minutes).
- Skip this and your account freezes!
After you’re set up
| Task | How Often | Why |
|---|---|---|
| Top-up funds | Before the next invoice or whenever you like (you can pay months in advance and save) | Keep ahead of big holiday bills |
| Re-confirm eligibility | Every 3 months | Stay qualified & avoid repayment |
| Update provider or child details | As needed | Payments only go to registered providers |
Remember: unused money can be withdrawn at any time, but the 20 % top‐up is removed if you do.
Handy links & contacts
- Open / manage your account: https://www.gov.uk/apply-for-tax-free-childcare
- Sign in: https://www.gov.uk/sign-in-childcare-account
- Childcare Choices (scheme explainer & calculator): https://www.childcarechoices.gov.uk/tax-free-childcare Helpline: 0300 123 4097 (HMRC Childcare Service)
- Accessibility & other languages: Pages available in Welsh; contact helpline for alternative formats.
- Share this article as a PDF
What to remember, when your new mum friend asks?
If you and your partner each earn between £2,539 and £99,999 this year, a quick 20‐minute admin sprint could be worth £2k‐£4k in free childcare money. Don’t leave it on the table — set up your account today!
