Childcare vouchers are what you would expect. They are vouchers that can be taken as part of your remuneration and presented to your childcarer as payment towards your childcare costs. The advantage to you is that the vouchers are exempt from both tax and National Insurance on the first £55 per week (or £243 per month). If both parents are working, each can claim the benefit on the same child(ren) and so double the saving on childcare costs.
Childcare vouchers are only available through your employer as they form part of your salary or bonus. If your employer does not currently offer a scheme, please contact us and we will send an employer's information pack to you to pass on.
Childcare vouchers are an ideal way to budget and pay for childcare whilst at the same time saving you money. They have the security of a guaranteed cheque and the registration for the childcarer is designed to be as easy as possible, meaning most quality childcare providers should have no problems accepting them.
Where can they be used?
At registered or approved childcarers. Registered childcarers can include day nurseries, workplace nurseries, childminders, pre-school playgroups, nursery schools, out of school clubs and holiday clubs.
(Unregistered childcarers such as nannies or close relatives will not be able to take part in the voucher scheme unless they become approved through a new voluntary approval scheme which the government is currently setting up. They will be required to produce an enhanced Criminal Records Bureau (CRB) check, show an understanding of childcare by attending an induction course on caring and hold a valid paediatric first aid certificate. See www.childcareapprovalscheme.co.uk/faqs.asp)
| How do I know if I am eligible for Childcare Vouchers? All parents paying for childcare at a registered nursery, childminder or out of school/holiday club are eligible for childcare vouchers. If your employer does not offer a scheme, they are effectively depriving you from saving the tax and National Insurance Contributions on up to £243 of childcare costs per month. For a standard-rate taxpayer the net savings will be over £960 per annum; a higher rate taxpayer will save even more! |
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