An employee benefit available to all eligible working parents
Once an employer is registered with us, eligible working parents can exchange up to £243† a month (£55† a week) of their gross salary for childcare vouchers. The exchanged part of the salary is exempt from tax and National Insurance contributions. This allows parents to make savings of up to £933* a parent, a year on their registered childcare costs.
Childcare vouchers can be used to pay for all types of childcare
Save money on all types of registered childcare for children up to 16^ years old, including day nurseries, nannies, au pairs, crèches, childminders, out of school clubs, holiday schemes, activity clubs and qualifying childcare offered by schools.
A scheme offering a potential saving of £1,866** a year
Both working parents can claim childcare vouchers whether they work for the same or different employers. Provided the employer offers a childcare voucher scheme, you could save up to £1,866** a family, a year.
A tax initiative
Launched in 1998, childcare vouchers are a scheme run by HM Revenue & Customs (HMRC).
†For parents joining a scheme from 6 April 2011, the Government has capped the amount of childcare vouchers a tax-payer can request each month to £243 for a Basic rate tax-payer, £124 for a Higher rate tax-payer and £97 for an Additional rate tax-payer. Parents who joined their employers childcare voucher scheme before 6 April 2011 can continue to request up to £243 a month (£55 a week) in childcare vouchers, regardless of their tax status, providing they remain in their employers’ scheme (i.e. they have received a childcare voucher in the last rolling 12 month period).
*Figures quoted are the maximum available savings for a Basic rate tax-payer. Higher and Additional rate tax-payers may save around £600 a year. The savings you make will depend on your circumstances.
^1st September following 15th birthday or 1st September following 16th birthday for children who are registered disabled.
**Figures quoted relate to the maximum family savings, if both working parents are Basic rate tax-payers and use childcare vouchers. If both working parents are Higher or Additional rate tax-payers they may save over £1,200 a year. The savings you make will depend on your circumstances.