On Thursday 4 October 2018 the government will close the childcare voucher scheme to new entrants, replacing it with the new tax-free childcare scheme.
We thought that this is important for those who have benefited from the voucher scheme, and are unsure what’s going on, so we asked Charlotte Cowgill, Legal Adviser at DAS Law, to share what you need to know…
Why is the government making this move?
The new scheme is intended to be a fairer and better targeted system than childcare vouchers, and will mean that all families can get support regardless of their employer or whether they are self-employed. Support is based on the number of children in a family, rather than number of parents as seen in the current childcare voucher scheme. Parents who wish to continue to …
I have been using childcare vouchers from my employer and Sodexo, a voucher scheme administrator, for 11 years now. I don’t get childcare tax credits, so this is the next best thing for me.
This year’s budget has introduced some changes, but don’t come into play till next year, so till then I will use my voucher entitlement.
I don’t pay tax or NI on childcare vouchers, so that’s a huge plus.
As the kids grow up, childcare costs have decreased, but I still use holiday clubs and after school clubs and the ones I use accept vouchers. Even in teen holiday clubs, they are accepted!
Childcare vouchers are a salary sacrifice scheme. You need an employer that offers the scheme, and your childcare provider has to accept vouchers for it to work. If you …