Childcare Voucher Schemes
Following the introduction of the new Tax Free Childcare Scheme (see below) parents will not be able to enrol in a childcare voucher scheme from April 2018. Parents who are already registered and receiving childcare vouchers may continue to do so but will not then be able to register for the new scheme.
Childcare vouchers are a cost-saving employee benefit available to working parents. Childcare vouchers operate as a salary sacrifice scheme – your contributions are taken from your salary before your usual tax and National Insurance contributions are deducted.
You can use childcare vouchers to cover the cost of care for children up to the age of 15 and even to pay for registered childcare including before and after school clubs, certain elements of independent school fees and holiday camps.
You can only use the vouchers to pay for any Ofsted (or equivalent) registered childcare. Childcare Vouchers can be used to pay for a wide range of childcare including:
- Home based care such as childminders,
- Nannies and au pairs
- Pre-school care such as nursery schools, play schools and crèches
- Care for older children such as out of school clubs (breakfast clubs, afterschool clubs), holiday clubs, music and drama lessons, activity holidays (please note that this does not apply for private music tution unless the tutor is registered with the childcare voucher provider themselves and is Ofsted registered)
Below is the list of current providers for who we are already registered. If your provider is not listed you should send an email to Mr Hyams in our Finance Department at email@example.com and he will arrange registration which usually only takes a few days.
- Co-operative Flexible Benefits
- Computershare Voucher Services
- Allsave Ltd
- RG Childcare
- Fideliti Childcare
- Rascals Childcare
Until April 2018, however, employer Childcare Voucher schemes remain the best way for working parents to reduce the rising cost of childcare. Many parents will not be able to claim under the new Government scheme so should join an employer scheme before it’s too late as the Childcare Vouchers scheme will be closed to new entrants from April 2018. Parents can remain on the Childcare Vouchers scheme beyond 2018 and for as long as they require.
New Tax-Free Childcare Scheme
The new Tax-Free Childcare scheme (TFC) will provide working parents with another option for tax savings on their childcare direct through the Government. Parents are able to open a new childcare account and for every £8 a parent pays into their childcare account, the government will pay in an extra £2. Parents can get up to £2000 government support per child per year towards their childcare costs (up to £500 every 3 months).
The government has started inviting parents to apply for Tax-Free Childcare beginning with parents of the youngest children first. Check whether Tax-Free Childcare is the best offer for you using the childcare calculator.