Childcare Vouchers – Making childcare affordable!
- by Kiddivouchers
Updated 25 January 2012
KiddiVouchers – Offering an easy way for working parents to save money
What are childcare vouchers?
Childcare vouchers are a Government scheme designed to help working parents afford high quality childcare.
Childcare vouchers are simply vouchers that you can use to pay for childcare, such as for nurseries, nannies or childminders. They can even be used to pay for after-school care and holiday play-schemes.
How do childcare voucher schemes help to save you money?
The vouchers can be provided by your employer, and are usually received instead of part of your salary through a system known as ‘Salary Sacrifice’. Unlike your salary, you don’t have to pay any tax or National Insurance on childcare vouchers, and that’s how you make the savings. Basic-rate taxpayers can order up to £243 a month of childcare vouchers, while higher-rate taxpayers can order up to £124 a month.
How do KiddiVouchers schemes work?
To benefit from childcare vouchers, your employer needs to set up a childcare voucher scheme. This is a simple process which usually takes about 10 minutes.
Employers save up to £402 a year* in National Insurance for every parent who uses childcare vouchers, so most employers are quite happy to set up a scheme. Once your employer has a scheme in place, you can join it by visiting www.KiddiVouchers.com or calling 0800 612 4395 and quoting your scheme number. You’ll be asked to provide your contact details and some basic details about your children and your childcare arrangements. You’ll also be asked to choose the amount of vouchers you need, up to your eligible limit.
Your vouchers will be credited to your KiddiVouchers account around your normal payday, and then you can use them to pay for your childcare. Most parents choose to have their vouchers paid straight into their carer’s bank account, but if you or your carer would rather have a traditional paper voucher then these are readily available.
The only requirements for joining the scheme are that you have an eligible child, and that you have enough salary to sacrifice without your remaining salary falling below the minimum wage.
Is there an expiry date on the vouchers?
Childcare vouchers can be spent up to 1st September after the child’s 15th birthday (or 1st September after their 16th birthday if they are disabled).
Will childcare vouchers affect your tax credits?
Childcare vouchers can affect the amount of tax credits that you receive. If you are receiving more than £45 a month in tax credits, it’s recommended that you have a tax credit calculation before joining the scheme. KiddiVouchers offers free tax credit advice and individual calculations, to help make sure that parents only sign up for childcare vouchers if the scheme is clearly in their best interests.
If you would like any further information about childcare vouchers, or would like to register for the scheme, call KiddiVouchers on 0800 612 4395 or visit www.KiddiVouchers.com, and we’ll be happy to help you.*Savings depend on individual circumstances.