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Last Chance...Childcare Vouchers

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Childcare Vouchers Last Chance

3 months left to register for Childcare Vouchers...

Register by 1st April 2018 to keep your options open. From the end of the current tax year on 5 April 2018, the employer supported Childcare Voucher Scheme which helps hard-working parents to pay for a wide range of quality childcare provisions will be closed to new applicants. It will be replaced by a new government-run scheme called Tax-Free Childcare (TFC). There are a number of fundamental differences between the two schemes; childcare vouchers for example are available to families where one or both parents work, whereas TFC requires both parents to be working. Which of the two schemes is best for a parent will depend on their personal circumstances, but once TFC is introduced, registration for the Childcare Voucher Scheme will close, and the option will no longer be available to parents. Parents registering for the Childcare Voucher Scheme by 1st April will keep their options open, and will be able to choose either to continue taking childcare vouchers until their child no longer qualifies (as long as they stay with their employer), or opt to switch to the new TFC scheme at any point in the future.

Childcare Voucher Scheme – Key Points

  • Under the Scheme, which operates on a Salary Exchange basis, a parent can opt to exchange up to £243 of their salary for childcare vouchers each month – free of tax and NI. A basic rate tax payer can save up to £933 per year on the cost of childcare, while a higher rate tax payer can save up to £623.  These savings are per person and can be doubled for a working couple.
  • Vouchers can be used for children up to and including15 years old – 16 years if registered disabled.
  • Vouchers can be used to pay for day, weekly and termly boarders, holiday clubs, nurseries, nannies, child-minders, and breakfast and after-school clubs as well as tutoring. Childcare providers must be registered with, and regulated by the appropriate authorities.
  • Parents can choose to pay as little as £10 per month into the scheme.
  • Vouchers can be backdated to the beginning of the current tax year (April 2017), and parents can select to use as little or as much of their allowance as they wish to.
  • Employers can save up to £402 per employee per annum on Employer‘s NI contributions.

Register now and beat the deadline....

Parents registering for Childcare Vouchers by 1st April 2018 will have the option to stay in the scheme or switch to the new government-run TFC scheme any time in the future. Parents who don’t register before the deadline will forfeit their option to participate in the Childcare Voucher Scheme. Don’t miss out. Call us now on 01280 851113, or email us.

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