Link to Employer LoginLink to Parent LoginLink to Carer LoginLink to Latest News
Site Search

You Are In : Home | Tax-Free Childcare Scheme

Tax-Free Childcare Scheme

Tax-Free Childcare Scheme

The Government has announced that from autumn 2015 there will be a new benefit scheme to help with childcare costs to replace the current childcare voucher scheme.  Here at Vouchers 4 Kids we positively welcome the new scheme and the aim to help and support working parents.  Affordable childcare is a must in the current economic climate and with the rising cost of childcare, plans for a simple and wide reaching scheme has never been so vital to help working parents pay for their childcare costs.

The new scheme will only be available for families where either both parents or a single parent works. Earnings per parent must be less than £150,000 for each parent per year. Work in this case means that each parent must work at least 16 hours a week.  For the first time, unlike the current childcare vouchers scheme, it will be open to the self-employed.

It will not be available to families that receive support through Tax Credits or Universal Credit (which will be introduced in the next two years to replace tax credits), as in this instance parents can get up to 70% of childcare costs paid by the government.

The new scheme will allow parents to receive up to £1,200 a year for each child which will work out as up to 20% of their childcare costs. In the first year, all children under 5 will be eligible, with the age range eventually including all children under 12.

Parents, who are a member of the existing childcare voucher scheme in the autumn of 2015, can continue to receive childcare vouchers or they can switch to the new scheme.  You will be unable to join the existing childcare voucher scheme after this point.  Nearer the time we will provide you with the necessary tools to help you in deciding whether it is more cost effective to stay in the childcare voucher scheme or switch to the new tax free childcare scheme.

We recommend that parents join a childcare voucher scheme to make the most of the current tax and NI savings, or if your employer does not have a scheme to encourage them to set one up as it really is a win win situation for both employer and employee. If you would like us to contact your employer on your behalf we are happy to do this, just complete our call back request form or give us a call on
01254 695178

As an employer, now is the time to review your current childcare voucher scheme.  If you do not currently have a scheme we can help set one up for you quickly and easily to enable you to benefit on the savings to both you and your employees.  You can get more information in our employers section.

Vouchers 4 Kids is a trading name of
Care 4 Kids Ltd.
Registered in England & Wales No. 4279894




HMRC Q & A Care 4 Kids