How does Tax-Free Childcare affect you?
Are you prepared for the changes to Childcare Vouchers? In April 2017, the Government launched Tax-Free Childcare, a new initiative for working parents which replaces the current Childcare Voucher Scheme to new joiners in April 2018.
With the introduction of the new scheme you do not have the option to take part in both, while if you leave your current childcare voucher scheme and transition onto the new Tax Free Childcare Scheme you also do not have the option to move back again.
Tax Free Childcare offers parents a 20p top up for every 80p paid into childcare up to a maximum of £500 per quarter, based on £2,500 worth of registered child care costs. Within this scheme there is a requirement to re-confirm eligibility per quarter, failure to do so could result in stopping of payments
If you sign up for Childcare Vouchers before April 2018 you can remain on the scheme, and will be able to choose which is more cost-effective for you and your family.
If you are not currently taking Childcare Vouchers, you should consider joining now to have the choice later when the changes occur – contact your employer to find out how to join.