The government has launched a new scheme called Tax-Free Childcare (TFC) and parents cannot benefit from the savings from TFC and Childcare Vouchers at the same time.
Childcare Vouchers will close to new joiners from 6th April 2018. However, anyone on a scheme and receiving vouchers before this date can continue to benefit from them.
Our Lots of Tots Nursery receive childcare vouchers from a number of schemes including Care 4, Kiddi Vouchers Limited, Fidelity and Computer Voucher Services. Another childcare voucher scheme, Edenred, which many of our parents use, have published the following explanation of how their voucher scheme works:
The process of receiving and paying with our Childcare Vouchers is designed to be simple and straightforward for both employers and employees.
Most employers who provide Childcare Vouchers do so through a salary sacrifice scheme. This means you agree to reduce your salary by a certain value, and receive Childcare Vouchers to the same value but pay no tax or National Insurance on these vouchers.
To join your employer’s Childcare Vouchers scheme you first of all need to complete a salary sacrifice agreement. Your employer will give you directions on how to do this.
After your agreement has been submitted to your employer, they will reduce your salary by the requested amount and arrange for vouchers to be provided to you.”