How to Set Up Your Tax‐Free Childcare Account in the UK

Tax‐Free Childcare Account in the UK
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By Steven Clarke
Page updated 19 June 2025

Reading time: 6 minutes

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?

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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

  1. 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).
  2. 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.
  3. Receive instant decision
    • Most parents get approved on the final screen. If HMRC needs extra checks they’ll email within 7 days.
  4. 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.
  5. 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.
  6. 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

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!