Tax Free Childcare
Tax Free Childcare is run by the Government, and employers will have no involvement with the administration of the scheme.
- Tax Free childcare can save you 20% on your childcare costs but up to a maximum saving of £2,000 per child.
- Anyone can apply for tax free childcare including the self employed.
- You must however earn a minimum of £155 per week and if you are a couple both parents must work.
- The maximum child’s age is 12 years old.
HMRC have confirmed that childcare vouchers will close to new starters in April 2018. After April 2018, any employee who is in the scheme will be able to continue to receive childcare vouchers.
- Childcare vouchers can save you 32% on your costs if you’re a basic rate tax payer but to a maximum saving of £933.12 per parent.
- Childcare vouchers are only available if the employers offer them.
- There are no minimum earnings but the vouchers requested must not take you below minimum wage.
- The maximum child’s age is 15 years old.