Tax Free Childcare
Some employers offer a childcare allowance or vouchers as part of a ‘salary sacrifice’ scheme to make child care more affordable for working parents. Childcare vouchers are a government initiated scheme available for employers for working parents to use to pay their childcare costs. Parents are able to request up to £243.00 per month to be deducted from their salary in exchange for vouchers to use against their childcare costs. As Childcare vouchers do not attract Tax and National Insurance contributions, working parents can save up to £933.00 per year on nearly £2000 per year if both parents in a household are part of a scheme.
During the roll-out of the government’s tax-free childcare scheme in 2017, childcare vouchers will remain open to new entrants until April 2018. Existing users will be able to continue claiming vouchers.
For more information see www.gov.uk/browse/benefits/tax-credits
If you have a child, you may be able to get child tax credit to help with the cost of looking after them. If you are on a low income you may also qualify for working tax credits. This could mean getting back up to 80% of your childcare costs, up to a limit of £140.00 per week for one child and £ 240.00 per week for two children.