Tax-Free Childcare for Two or More Children: Accounts and Top-Ups

Yes, you can use Tax-Free Childcare for more than one eligible child. Each child needs their own childcare account, with their own balance and top-up allowance. Calculate the payment for each child before adding up your family's total.

Is the top-up limit per child or per household?

The standard limit is £500 every three months for each eligible child, or £1,000 for a disabled child. Two children on the standard limit can therefore receive up to £1,000 between them in a three-month period, provided each has enough qualifying deposits. These are maximum amounts, rather than automatic payments. See the GOV.UK scheme overview.

Can I pay both children's nursery fees from one account?

No. Pay each child's fees from that child's account, even if the nursery issues a single family invoice. Ask the nursery to show the amount owed for each child after any funded hours or sibling discounts.

HMRC's rules on permitted payments say an account can pay for qualifying childcare for the child it belongs to. Paying a sibling's fees from it can mean repaying the government top-up on that part of the payment. An unused allowance for one child cannot cover the other child's bill.

Worked example: one child is close to the quarterly cap

Suppose both children have a £600 bill and no account balance. Child A has already received £450 in top-ups this period; Child B has received £100. Both use the standard £500 limit. Our calculation is:

You deposit £1,030 in total and receive £170 in top-ups, giving £1,200 to pay the bills. Simply taking 80% of the combined invoice would suggest £960, leaving you £70 short because Child A has only £50 of allowance left.

How to use the calculator for siblings

1. Open the Tax-Free Childcare calculator and enter the first child's bill after funded hours or discounts.
2. Enter that child's available balance and top-ups already received in their current three-month period.
3. Use the disabled-child setting only where that child qualifies for the higher limit.
4. Select Add another child and repeat using the next child's own figures.
5. Deposit the calculated amounts into the matching accounts, then pay the provider from each account.

Use the dates and allowance displayed in the official account rather than assuming the period matches a calendar quarter. HMRC can vary entitlement periods to align siblings' accounts, which can change the top-up limit for that period. Check the actual allowance before planning a maximum deposit. The calculator uses the standard cap and does not model a shortened or extended period.

Can both parents open an account for the same child?

GOV.UK says you and your partner cannot both have accounts for the same child. If you are separated and jointly responsible, agree who should apply; if you cannot agree, HMRC can decide. The official application guidance explains this.

Before paying a combined nursery invoice

Keep the invoice breakdown and give the provider each child's payment reference so they can match the separate payments. Allow time for money to clear using our payment-times guide. If a sibling's fees were paid from the wrong account, contact the Childcare Service for advice rather than trying to balance it with another incorrect payment.