Tax-Free Childcare on Maternity Leave and When Returning to Work

Maternity leave does not automatically end Tax-Free Childcare for an older child. When applying for the child whose birth or adoption led to the leave, your planned return date affects when you can apply. Funded hours in England have an additional term timetable.

Can I keep support for an older child?

HMRC’s parental-leave rules can treat qualifying maternity, paternity, adoption and shared parental leave as paid work. You generally need to have been in qualifying work immediately before the leave. The return-date restriction for the new child does not apply to an older sibling. Keep reconfirming and check the remaining eligibility conditions.

When can I apply for the new child?

The Tax-Free Childcare application guidance sets these application opening dates for parents starting or returning to work. They do not by themselves confirm when a funded nursery place starts.

Use your actual expected return date in the application. If it changes, contact HMRC rather than assuming an earlier declaration remains correct. Do not assume a blanket rule that you must wait until 31 days before returning.

How are funded hours in England different?

For the child the leave relates to, a return between 1 October and 31 January can allow a January funded start, with an application by 31 December. The child must also meet the age and other rules. A February-to-April return normally points to April, and a May-to-September return to September. Read the funded-hours timetable.

Worked example: two children and a January return

Imagine a parent on maternity leave with a three-year-old already using nursery and a baby born on 20 March 2026. They plan to return on 18 January 2027. They should check continuing support for the older child separately from the baby’s application. The baby reaches nine months in December and the return date falls within the January window.

For the baby’s funded hours, they need a valid code before the December deadline and an agreed place. Our January 2027 guide covers that process. The two children still need separate Tax-Free Childcare accounts and top-up allowances.

How should I plan payments during leave?

List the actual paid bills for each child, the balances already available and the top-up left in each account. A £500 remaining eligible bill needs a £400 deposit and £100 top-up if no balance is available and the allowance is sufficient. Recalculate when attendance changes rather than leaving the old payment in place.

Use our calculator for each child. If you receive Universal Credit, check its rules before applying for Tax-Free Childcare because the schemes cannot be received together.