Childcare Tax Voucher

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Context Overview of Tax-‐Free Childcare FAQs Tax-‐Free Childcare and Childcare Providers How does Tax-‐Free Childcare compare to Childcare Vouchers How to work out if you will be better off on Tax-‐Free Childcare Examples Finally…Points to consider Where to get further advice Last updated Jan 2017 1.. How does Tax-‐Free Childcare compare to Childcare Vouchers The following table shows the difference between the Childcare Voucher scheme and Tax-‐Free Childcare… Comparison between Childcare Vouchers and Tax-‐Free Childcare Savings Age of children Registered childcare Earners in a family Maximum income cap Availability Self-‐employed parents Implementation date Childcare Voucher scheme Each parent can save up to £933 each per year.. There is no cap on the maximum income a For a family to be eligible both parents must family can have to claim Childcare Vouchers, be working and earning at least the equivalent although the amount a parent can save is of 16 hours at the National Living Wage (from dependent on the tax bracket they fall into.. Each parent sacrifices up to £243 of their salary (tax and NIC free) Childcare provider paid through parent’s online account Each parent saves up to £933 per year 2 parents = £1,866 How the Tax-‐Free Childcare scheme will work For every 80p you pay into your account, the Government will give you 20p, up to a maximum of £2,000 per year per child.. For example if you are in a couple do both of you meet the hours, income and employment rules Is your childcare provider registered and have you checked if they are happy to receive payments through Tax-‐Free Childcare If you are an existing Childcare Vouche

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