Tax free childcare
Latest update - 3 September 2017
The government has introduced a new scheme called Tax-free Childcare that allows parents to apply for payments that cover 20% of childcare costs. From 21stApril 2017 the scheme was open to parents of children under 4 and parents of disabled children. Before the end of 2017, the scheme will be expanded to also include parents of children up to the age of 12. You can receive updates or apply on the government’s childcare choices website. If you are having difficulty with your Tax-Free Childcare account you can call the childcare service helpline on 0300 123 4097.
As a result of this new scheme it was also confirmed that Childcare Vouchers (another Government-supported scheme) will remain open to new entrants until April 2018, giving parents 12 months to enjoy tax and National Insurance savings through salary sacrifice. Beyond April 2018, members of a Childcare Voucher scheme can continue to enjoy savings, whilst new parents will only be offered Tax-Free Childcare.
We can confirm that the University’s KiddiVouchers scheme will remain open to new entrants until April 2018. After this date, new registrations cannot be accepted. If you use the University’s Workplace Nursery Scheme you will not be affected.
What should you do now?
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.
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.