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Changes to Childcare Vouchers – October 2018

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On 15th January 2018 the new ‘Tax-Free Childcare’ scheme opened to parents whose youngest child is under the age of 9. The scheme opened to all remaining eligible families with children under the age of 12 on 14th February 2018.

 

Employers who currently operate a childcare voucher scheme in their business must close the scheme to new applicants from the 4th October 2018. Whilst employee’s already in the scheme can continue to participate and receive their existing childcare vouchers, as long their situation does not change. For example, if they leave their current employer or choose to take up the new ‘Tax-Free Childcare’ scheme, they will no longer be eligible for Vouchers.

 

The new ‘Tax-Free Childcare’ scheme, which is aimed at helping working parents with the cost of childcare with up to £500 every three months (£2,000 pa) of support per child each year or £4,000 for disabled children. The government will pay £2 for every £8 you pay your approved childcare provider via a ‘Tax-free Childcare’ online account. You can get ‘Tax-Free Childcare’ at the same time as 30 hours free childcare if you’re eligible for both.

 

To make an application, the employee will need to visit: https://childcare-support.tax.service.gov.uk/par/app/trialmessage

 

 

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