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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