Childcare vouchers - Don't miss out
July 2nd, 2017
1333 Views
Have you or your partner signed up to receive childcare vouchers through your employer? If not, read on to find out how you could be saving lots of money!
If your employer is signed up to the scheme, you will be able to purchase vouchers for your childcare from your pre-tax salary, so that is before your tax or national insurance is deducted.
This means you may be able to save hundreds of pounds!
The exact amount will depend on which tax rate you pay, but if you are on the basic tax rate, you will be able to pay for childcare up to the value of £55 per week / £243 per month.
Most employers operate a salary sacrifice scheme to provide the vouchers, so you would give up a certain amount of your salary to purchase the vouchers, for example £1,000, which would only be £700 in your pocket after tax and NI is deducted - but you are still receiving £1,000 worth of childcare.
If you are on the basic tax rate, this would save you more than £900 a year!
You can pay for your child's care through the voucher scheme up to the age of 15, whether it is through an after school club, nursery or a childminder, as long as they are regulated.
Employers must be signed up to the scheme, but if they aren't it would definitely be worth speaking to them about it, especially if there are other interested colleagues who are parents.
There are many online calculators you can use to see exactly how much you will save, including this one from the government website, but it is always best to discuss with your employer too.
Click Here to Buy
I'd suggest it's best to get your skates on - from April 2018 you can't apply for the scheme as a new applicant, as it is being replaced by a different tax-free childcare scheme.
If your employer is signed up to the scheme, you will be able to purchase vouchers for your childcare from your pre-tax salary, so that is before your tax or national insurance is deducted.
This means you may be able to save hundreds of pounds!
The exact amount will depend on which tax rate you pay, but if you are on the basic tax rate, you will be able to pay for childcare up to the value of £55 per week / £243 per month.
Most employers operate a salary sacrifice scheme to provide the vouchers, so you would give up a certain amount of your salary to purchase the vouchers, for example £1,000, which would only be £700 in your pocket after tax and NI is deducted - but you are still receiving £1,000 worth of childcare.
If you are on the basic tax rate, this would save you more than £900 a year!
You can pay for your child's care through the voucher scheme up to the age of 15, whether it is through an after school club, nursery or a childminder, as long as they are regulated.
Employers must be signed up to the scheme, but if they aren't it would definitely be worth speaking to them about it, especially if there are other interested colleagues who are parents.
There are many online calculators you can use to see exactly how much you will save, including this one from the government website, but it is always best to discuss with your employer too.
Click Here to Buy
I'd suggest it's best to get your skates on - from April 2018 you can't apply for the scheme as a new applicant, as it is being replaced by a different tax-free childcare scheme.
Sophie x
