What are childcare vouchers
The University provides you with access to the KiddiVouchers childcare voucher scheme. 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.
Spring Budget 2017 - important changes
It was confirmed that the government's Tax-Free Childcare is set to be rolled out from April 2017. The scheme will initially roll out to families with younger children, and open to all by the end of 2017.
It was also confirmed that Childcare Vouchers 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 the Childcare Voucher scheme can continue to enjoy savings, whilst new parents will only be offered Tax-Free Childcare.
Our KiddiVouchers scheme will continue to run for existing members and will remain open to new entrants until April 2018. After this date, new registrations cannot be accepted.
If you pay for childcare, you should consider joining KiddiVouchers before it is too late. 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. Although the Government are ‘bundling’ the sign up for Tax-Free Childcare with the application for 30 hours free childcare, it is possible to continue to use Childcare Vouchers as well as benefitting from 30 hours free childcare.
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