Tuesday, 13 October 2015

Changes To MOD Childcare Voucher Scheme

Childcare vouchers are a government initiative designed to help working parents pay for childcare. You can convert part of your salary into vouchers before your usual tax and NI contributions are taken. This means that you only have to pay the tax and NI on what’s left, saving you up to £933 per year.

What’s even better is that both parents can take advantage of the scheme, so you could make a joint saving of up to £1,866 per family!

You will receive your childcare vouchers in line with your monthly pay. You can choose to receive paper vouchers at your correspondence address, or e-vouchers, which are by far the most popular choice and allow you to go online and make direct payments into your childcare provider’s bank account.

Childcare vouchers can be used to pay any Ofsted (or equivalent) registered childcare providers, which can include nurseries, childminders, nannies, play schemes, out-of-hours school clubs and holiday camps, as well as certain elements of Independent school fees.

Full details, together with the appropriate forms, how to check eligibility, and Frequently Asked Questions, can be found on the Sodexo Website.

Changes to the Scheme

In autumn 2015, the Government is planning to introduce Tax-Free Childcare, a new initiative for working parents which will replace the current Childcare Voucher Scheme. If you already take Childcare Vouchers when Tax-Free Childcare launches 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. Full details on how to compare the schemes can be found on the Tax-Free Childcare Info Hub.