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Get more from your Childcare Vouchers

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Get more from your Childcare Vouchers

Get the maximum value from your Childcare Vouchers...

Following the expense of Christmas, January can seem like an especially long month for employees,  particularly those who have to pay for childcare. Registering for the Childcare Voucher scheme will help working mums and dads make their cash go further and save their employer money at the same time. This salary exchange scheme allows working parents to pay for childcare prior to having tax and National Insurance deducted from their salary, saving many couples over £1,000 a year on childcare and reducing the NI contributions their employer has to pay by up to £402 per employee per year.  Vouchers can be used for children from birth up to 1st September following their 15th birthday (or 16th birthday if they are registered as disabled).

The scheme helps both parties: Hard-working parents are able to afford quality childcare, and their employers benefit from a happy workforce. For any parents who may still need convincing, we’ve got two suggestions to help them get even more value from Childcare Vouchers:

Use ChildCare Vouchers to maximise your tax savings in the current financial year

Employees who’ve been thinking about registering for the scheme but not got around to it yet should know that if they apply before the end of the current tax year (5th April 2016), they can backdate their vouchers to the beginning of the current tax year. This means that basic rate tax payers can claim their allowance of £243 per month, going back as far as 6th April 2015. They can select to use as much or as little of this allowance as they wish; a parent on basic rate tax registering in February 2016 for example, could claim a maximum of 10 months’ allowance - £2,430, available to allocate before the new tax year begins.  Parents who want to take advantage of this tax saving need to act quickly - the sooner they register, the more they’ll be able to save.

Some conditions apply:

  • Employee must not have already used their childcare tax allowance
  • Child must have been born prior to months being claimed
  • Employee must have parental responsibility for period being claimed
  • Employee must have been employed by current employer for period claimed
  • Deductions must not take employee’s earnings below the National Minimum Wage (company directors are exempt from this condition)

Use ChildCare Vouchers to cover tuition fees

While Vouchers are most often used to subsidise the cost of childminders, nurseries and playgroups, they are extremely flexible and can be used against a wide range of services including before and after school clubs and holiday clubs, helping parents to arrange the cover that best suits their working arrangements. Vouchers can also be extremely useful for parents of older children who are preparing for key stage examinations like the 11 Plus, SATS or GCSEs, as they can be used to help pay for tuition fees. (Please note that Vouchers can only be redeemed with registered childcare providers).

Contact Us Today

If you’re a working parent, register for Childcare Vouchers now to cut the cost of childcare and to save on tax; if you’re an employer with parents of children aged up to 15 in your workforce, encourage them to register for the scheme and reduce your overheads.

Call us now on 01280 851113 to discuss the Childcare Voucher scheme, or any of our other employee benefit schemes in more detail, or email us.

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