Upcoming changes to the Childcare Voucher Scheme – so what does this mean for me?
As any working parent will know, Childcare Vouchers are there to help with the cost of childcare by creating income tax and national insurance savings. Childcare Voucher schemes have existed for over 15 years but are soon to be replaced by the Government’s Tax-Free Childcare scheme.
Childcare Vouchers have historically been provided by accredited third party organisations. Employers choose a provider and employees engage directly with the provider to access the vouchers. The Tax-Free Childcare scheme is run by the Government and employees who use this scheme have to register directly with the Government.
However, from 6th April 2018 the Childcare Voucher programme will close to new applicants. Anyone already in a scheme by this date will continue to benefit, anyone wanting to access tax efficient childcare after this date will have to use the Tax-Free Childcare scheme.
This creates a “buy now while stocks last” situation where employees have until April 2018 to join a Childcare Voucher scheme or the opportunity is lost.
So what are the differences between the two arrangements? And how do you know whether you’re better off joining the Childcare Voucher Scheme or the Tax-Free Childcare Scheme? Click here to see our comparison table which should help you answer these questions.
For further reading why not take a look at the following information sources for further understanding:
- Government’s ‘Better off’ Calculator – https://www.gov.uk/childcare-vouchers-better-off-calculator
- Government website – https://childcare-support.tax.service.gov.uk/
If you would like to discuss the changes in more detail, why not call us on 01858 810200 or email firstname.lastname@example.org.
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