What are childcare vouchers
The University provides you with access to the KiddiVouchers childcare voucher scheme. However, following the roll-out of the government's Tax-Free Childcare in 2017, Childcare Voucher Schemes will only be allowed to remain open to new entrants until April 2018. Beyond April 2018, members of Childcare Voucher scheme can continue to enjoy savings as long as their employer continues to offer the service, whilst new parents will only be offered Tax-Free Childcare. Our KiddiVouchers scheme will continue to run for existing members after April 2018.
What are childcare vouchers?
Childcare vouchers are a Government-supported scheme to help childcare be more affordable.
You can save hundreds of pounds every year by using this scheme, even more if both parents choose to receive the vouchers. The scheme works through salary exchange (sometimes called salary sacrifice), which means parents can opt to receive childcare vouchers instead of part of their salary. Unlike your salary, you don't have to pay any tax or National Insurance on childcare vouchers. This means that you only pay tax and NI on your salary after the childcare vouchers have been deducted so this means you pay tax on a smaller amount of money.
This saving in tax and NI is typically worth around £900 a year for basic-rate taxpayers, so families with two working parents who opt to take childcare vouchers could save around £1,800 a year. Your savings will depend on the amount you earn and the amount of tax you currently pay.
Don't delay sign up before April 2018
If you pay for childcare, you still have time to maximise your childcare savings by registering with KiddiVouchers before the cut off period and make an informed decision on what scheme is best for you and your family. Based on KiddiVoucher's research it is expected that over 60% of parents will save more money with Childcare Vouchers. Their online calculator will help you find the best scheme for you.
If you're using the free 30 hours free childcare scheme for a nursery place, you can still benefit from childcare vouchers for any additional childcare costs. HMRC have confirmed this is correct and are in the process of removing conflicting information from the Childcare Choices website, that had confused parents thinking they had to join the Government's new Tax Free Childcare Scheme to be eligible.
It is recommended that you seek independent financial advice on Childcare Vouchers and the Tax Free Childcare Scheme to determine what is best for your individual family circumstances.
More about our scheme
Your savings will depend on the amount of childcare vouchers you order and the amount of tax and National Insurance you normally pay. Childcare voucher legislation changed in April 2011, so your savings will also depend on whether you joined the University’s childcare voucher scheme before or after this date. Use the KiddiVouchers savings calculator to know exactly how much you will save.
Childcare vouchers can be used to pay for many kinds of childcare, including: nurseries, playgroups and pre-school; registered childminders; after-school clubs and breakfast clubs; holiday play schemes and nannies and au-pairs.
Please visit the KiddiVoucher's link for the full scheme rules (as at 5 April 2015).
Register online at www.kiddivouchers.com or by phoning 0800 612 9015. This should take you no more than 10 minutes. To register you'll need:
- To quote our scheme number: S439777W
- Provide your National Insurance number
- Provide your payroll reference number (this can be found next to your name on your payslip)
- Your childcare provider's contact details