Childcare vouchers are a scheme initiated by the Government whereby employers give their employees childcare vouchers in order to pay for their childcare costs for children up to the age of 16 years. Children will qualify for childcare vouchers up to the first Saturday after their 15th birthday and if the child is disabled then this date changes to the first September after they reach their 16th birthday.

Basically childcare vouchers will help you make huge savings, with £55.00 per week tax relief, they will double your allowance if both parents are eligible and they don’t attract tax or national insurance contributions.

What parents have to do is simply order up to £243.00 which is the basic rate for tax payers, additional rate caps and higher additional rate caps will be lower. So you order this amount per month which is then deducted from your wages so that your money can be exchanged for childcare vouchers. With these vouchers you can then go on to pay for all your childcare costs with a registered childcare provider. Childcare vouchers enable parents who are working to carry on with their jobs whilst having the peace of mind that their children are being taken care of.

How much will childcare vouchers save me?

Childcare vouchers could save working parents around £933.00 per year and the added bonus is that they don’t attract national insurance or tax contributions. If both the parents in the household are in employment and they both join a childcare voucher scheme then they could realistically save £1,800 per year. Of course the amount of savings will be determined by how much money they earn and other individual circumstances which may include, pension deductions or salary sacrifice deductions.

Where can I use my vouchers?

Childcare vouchers can be used to pay for childcare at registered childcare providers these may include, nurseries, childminders, play schools, preschools, crèches, nannies, before and after school clubs, Au Pairs holiday clubs/camps, play schemes, private schools and also reception classes and out of school care at independent schools.

How do I register for child care vouchers?

Employers must offer the childcare voucher scheme and many of them do, if they do offer the scheme then you must ask them for your unique password and web link. The payment process with childcare vouchers is quick and easy to do for both the employer and employee. Those employers who do offer the scheme will probably do so through a salary sacrifice scheme, this means your salary will be reduced by a certain amount and you will receive childcare vouchers of the same amount and you will have no tax or national insurance to pay.

To first join the voucher scheme you must first complete a salary sacrifice agreement, your employer will help you with this and then once your agreement has been submitted to your employer they will then go on to reduce your salary by the amount that has been agreed on and you will be provided with your childcare vouchers.

For more info take a look at www.gov.uk/childcare-vouchers and www.childcare-courses.com

Ok so that’s it really, that all that’s involved in getting child care vouchers, as you can see it’s pretty easy and straightforward to do, it’s not at all stressful and will help to save you money, the process is simple and things usually run smoothly and apart from all the savings the most important thing is you’ll have peace of mind knowing that your child is being taken care of, while you can carry on with your job.