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With the phasing out of the Childcare Voucher Scheme, the government has introduced a new Tax-Free Childcare Scheme.

You should make your new employees aware of this as they can no longer join your existing Childcare Voucher Scheme. This scheme is also available to the self-employed.

Eligible working parents can get up to £2,000 per child (aged 0 to 11) per year towards qualifying childcare. Therefore for 2 children, it could mean a £4,000 saving per year.

Qualifying childcare providers must be registered and could come under any of the following:

  • childminders
  • nurseries
  • breakfast clubs, after school clubs and holiday clubs

For disabled children, the scheme is available up to the age of 16 with a maximum government contribution of £4,000 per child per year.

This scheme is not operated through your payroll and is an arrangement between the working parent and HMRC. Where both parents are applying, it will be separate applications.

For more information and how to apply, visit www.childcarechoices.gov.uk.

Contact our Payroll Bureau team for help and advice on Tax-Free Childcare Scheme.