Childcare Vouchers
What are they?
- Childcare vouchers are a method of paying for your childcare that offers working parents the opportunity to save up to £1195 per year (at current rates) in tax and National Insurance payments.
How do I get them?
- Your employer will set up a "salary sacrifice" scheme for you and you will receive the vouchers electronically or, in some cases, as traditional paper vouchers.
- Follow the links to voucher providers advertised on this page or put "childcare vouchers" into your search engine to find out more.
Where can I use them?
You can use them for a variety of registered or approved childcare services for children up to the age of 15 (16 if registered disabled):
- Home care - nannies, childminders etc
- Pre-school - nurseries, creches, Montessori schools etc
- Care for older children - breakfast clubs, after-school clubs, holiday clubs etc
My childcare provider doesn't accept them!
- With most voucher providers it is a quick and easy process for a childcare provider to register to receive vouchers.
What are the benefits?
- You can save up to £1195 per year in tax and NI
- Your employer can save up to £370 per year in NI contributions for each employee
- Your childcare provider wil receive payment directly to them from the voucher provider
Are there any downsides?
- If you receive Working Tax Credit or Child Tax Credit you will have to declare receipt of vouchers and it may have a negative impact on your tax credits.
- The government has recently announced its intention to phase out tax and NI relief on "employer supported childcare", of which childcare vouchers are a part, by 2015!
