The Schemes
Childcare vouchers or TFC which has replaced the voucher system since 4th October 2018 are an efficient way for you to pay for childcare out of your PRE-TAX income. You can use the monies put aside for after school or holiday childcare or activities until the September after your youngest child’s 15thbirthday (16thif they are disabled).
Vouchers and TFC last a long time so if your childcare costs are higher during school holidays it is worth saving them regularly in advance.
- With Childcare Vouchers there are limits on how much you can buy –
- Basic-rate (20%) taxpayer: £55/week voucher, max annual tax/NI saving £933
- Higher-rate (40%) taxpayer: £28/week voucher, max annual tax/NI saving £625
- Top-rate (45%) taxpayer: £25/week voucher, max annual tax/NI saving £623
New to it all?
If you are new to childcare options you are now unable to buy into the Childcare Voucher option and can now only sign up for Tax-Free Childcare. This scheme is also open to all, including the self-employed, rather than just to employees of companies that offered Childcare Vouchers, but only up to. This scheme effectively gives you 20% off childcare provision giving you an extra 20p onto each 80p you put into the system. In total you can save up to £10,000 of childcare per child each year, so saving up to £2000.00 of free childcare.
Useful websites
There is lots of information online about how to access free childcare
https://www.moneysavingexpert.com/family/tax-free-childcare/
https://www.gov.uk/help-with-childcare-costs/childcare-vouchers
How do I pay for Childcare using my vouchers?
Contact your provider, such as Rockley for Rockley Point, Poole Park or Bartley, who will give you the payment details required to redeem your Childcare Vouchers or TFCs online. It is very simple, especially once you have set up your first payment, as your particular scheme will then recognise the provider for future payments. We then process your booking in the same way as someone paying by BACS.
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