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New Deadline for Childcare Vouchers

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Childcare Vouchers Employee Benefits

Childcare Voucher Scheme...NEW deadline

The Government recently announced that its new Tax-Free Childcare scheme will be introduced in a phased process throughout 2017/18. To be eligible to qualify for this new scheme, which will initially only include children under 5 years, both parents have to be working. The Government propose to extend the age limit to include children under 12 years within the first twelve months.  Once the new Tax-Free Childcare scheme is introduced parents will not have the option of joining the current Childcare voucher scheme.

The current Childcare Vouchers scheme was set to close to new registrants on 5th April 2018. However, on March 13th the Education Secretary announced the decision to extend the Childcare Voucher scheme for a further six months. The date by which parents must register for the existing scheme has not yet been confirmed but it is thought that the deadline date will be sometime in October 2018. Parents who are signed up for Childcare Vouchers before this new deadline will have the choice of either continuing to take childcare vouchers or switch to the new scheme if they wish (subject to staying with the same employer and not taking an unpaid career break of longer than a year). Take a look at the current scheme versus the new scheme and see which scheme suits you best. Don’t miss out on the chance of registering for Childcare Vouchers.

Guide to ChangesWhich Scheme?Countdown Poster


There’s Still Time to Register for Childcare Vouchers…

The two schemes are different, and which one is best for a parent will depend on their personal circumstances. Once registration for the Childcare Voucher Scheme closes however, parents will no longer have a choice. To meet the HMRC deadline, parents need to register before the expected deadline in October 2018 but to allow time for the completion of paperwork and payroll deductions.


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. (Subject to certain criteria*)


Register now and beat the deadline....

Register for Childcare Vouchers NOW and you will have the option to stay in the scheme or switch to the new government-run TFC scheme any time in the future. If you don’t register before the deadline, you will forfeit your 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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