From the 4th October 2018 the well regarded Childcare Voucher Scheme will close to new applicants. If you already use Childcare Vouchers don’t panic as you won’t be affected. You can continue to use the scheme providing your employer continues to offer it and you remain employed with them. If it’s something you have been considering doing and will benefit you more than the Tax-Free Childcare, then don’t delay and join before October so you don’t lose out!
Top Tip: Running a Childcare Voucher Scheme through your limited company could save you money! Both your employee and you won’t pay National Insurance (NI) on the portion of income used for vouchers. Carrington can manage this for you and help you save.
What happens after October 2018?
A new scheme called Tax-Free Childcare comes into effect. The scheme works on a per-child basis rather than a per-parent basis. You need to fulfil certain criteria and if you are eligible you may get 20% of the annual childcare costs paid for by the Government. For every 80p you pay into a newly created ‘Childcare Account’ the government will contribute 20p. You could get up to £2,000 per year per child – the scheme only allows for a maximum of £10,000 per year childcare costs per child. The Tax-Free Childcare scheme is open to anyone who fits the criteria and not just to an employee of a company.
To be eligible for the Tax-Free Childcare scheme you must:
Childcare Vouchers win for:
Tax-Free Childcare wins for:
Top Tip: Use an Umbrella company? Carrington Umbrella is one of the few umbrella companies that offer a Childcare Voucher Scheme to contractors. Switch to us before October 2018 to avoid missing out! Visit https://carringtonumbrella.co.uk/ or contact us via email: firstname.lastname@example.org or call 0203 713 4530 for more information.