What is the income rule for 30 hours free childcare, and could it affect your household?
By Katharine, Founder, EMBR Tax
Last updated for the 2026/27 tax year · 6 April 2026
What is the work test for 30 hours free childcare?
A lot of parents know about the work rules for 30 hours free childcare. Fewer realise that expected adjusted net income also matters. If you are close to £100,000, that detail is worth checking early.
Why does the hidden income rule also matter?
For this scheme, the rule is not just about working enough. It is also about whether either parent expects adjusted net income over the limit for the tax year.
How can one partner's income affect the whole household's eligibility?
- It is easy to think only salary matters
- One partner can make the household ineligible if expected adjusted net income goes over £100,000
- Timing, bonuses, and other income can change the position quickly
What is the bottom line?
The work test gets most of the attention, but the income rule can matter just as much. If your household is near the £100,000 line, it is worth reviewing adjusted net income before assuming you still qualify.
Frequently asked questions
Is the 30 hours free childcare scheme only about the work test?+
No. The rule is not just about working enough. It is also about whether either parent expects adjusted net income over the limit for the tax year.
What is the income limit for 30 hours free childcare?+
If either parent expects adjusted net income over £100,000, the household may not be eligible. One partner can make the household ineligible if expected adjusted net income goes over £100,000.
Why do income changes matter for 30 hours free childcare?+
Timing, bonuses, and other income can change the position quickly. It is easy to assume only salary matters, but adjusted net income is the figure HMRC uses.
Related guides
- Who is eligible for Tax-Free Childcare, and what does the £100,000 income rule mean?
If you or your partner expect adjusted net income over £100,000, you are not eligible for Tax-Free Childcare. Here is what the rules mean and how to check.
- What is adjusted net income, and why does it matter for your tax and childcare?
Adjusted net income explained: what counts, what can reduce it, and why it affects your tax, Personal Allowance, and childcare support.
- Can salary sacrifice reduce your adjusted net income and improve childcare eligibility?
Salary sacrifice may reduce adjusted net income and improve eligibility for Tax-Free Childcare and 30 hours free childcare. Here is what to check.