Child care voucher scheme
Child care voucher scheme
Currently, employees are able to purchase up to £243 per month of childcare vouchers. The vouchers are purchased through a salary sacrifice scheme, which allows employees to agree to give up part of their gross salary in return for a benefit, thereby reducing the amount of tax and NI that they would normally pay.
The vouchers can be used to pay towards any form of registered childcare for children up to the age of 15 (1st September following their 15th birthday) or 16 for those registered disabled, as listed below:
• Crèche, day nurseries, and playgroups
• Workplace nurseries
• Registered childminders
• Independent nursery schools
• Breakfast/before school clubs
• After school clubs and activities
• Holiday and summer clubs
• Approved nannies and au pairs
Parents can register multiple carers providing they are all recognised by an appropriate regulatory body such as Ofsted. Carers also need to be registered directly with the voucher provider that the employer uses to manage their childcare voucher scheme in order to be able to receive payment.
Please note, employees will no longer be able to join the Edenred Childcare Voucher Schemes from October 2018. However, any employees that are already participating in the Childcare Voucher Scheme at this time can continue to do so. Employees will still be able to join the government scheme to obtain childcare vouchers (see below).
For further information on the Edenred scheme up to the 31st August 2018, please click here and for details on how to join please contact the Employee Relations Team.
This is a new Government scheme and has been available for our employees from April 2018 unless they are already members of the above childcare voucher scheme at the time. Under the new scheme, parents will be able to use a tax-free childcare account to pay for registered childcare. For every 80p paid in by the parent, the government will add a further 20p. The scheme allows for up to £10,000 of childcare costs per child each year but there is no limit on the number of children that a parent can claim for.
In the case of a parent claiming the full £10,000, they would pay £8,000; while the government would provide a £2,000 subsidy.
Where a parent is part of a couple, it will be necessary to supply details of the partners income. (Higher-rate taxpayers qualify for the same amount of government help as lower earners). Where an application for tax-free childcare is agreed, each case will be re-assessed every 3 months to reconfirm eligibility.
For further information about Tax Free Childcare and how to register please use the following link - https://www.gov.uk/government/news/tax-free-childcare-launches-today-for-children-under-four
Click the below icon to see which scheme would work best for you.