Childcare Voucher Scheme closure - Order vouchers by September payroll
Following a Parliamentary Debate and Vote on 13th March to keep Childcare Vouchers open to new entrants beyond April 2018, the Government announced a six-month extension to the Childcare Voucher scheme.
It had been reported how the Tax Free Childcare Scheme has been beset with various problems. This six month extension will enable concerns to be raised about this scheme. But it will also give parents an extra window of opportunity to join a Childcare Voucher Scheme and additional time to rally your local MP to keep Childcare Vouchers open.
If you pay for childcare, you now have additional time to maximise your childcare savings by registering with KiddiVouchers, our Childcare Voucher Scheme provider, and can make an informed decision on what scheme is best for you and your family.
The University’s childcare vouchers scheme will be closing to new entrants from 4th October 2018.
You will need to have at least one voucher order in place by your September payday to ensure that you receive vouchers before 4th October cut-off, to secure your place in the scheme for future months. Your first vouchers must be received before the deadline.
For existing KiddiVoucher members, as long as you have not taken any longer than a 12 month break from vouchers before September 2018, you will be eligible to stay in the scheme.
If any scheme members exceed a 12 month break once the scheme has closed, they will no longer be eligible to be in the scheme.
The cut-off date for registering and making amendments to September vouchers is the 31 August 2018 for employees paid on the 15th of each month and the 14th of September 2018 for employees paid on the 27th September (end of month payroll).
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Why should you register?
If you pay for childcare, you still have time to maximise your childcare savings by registering with KiddiVouchers before the next cut off period and make an informed decision on what scheme is best for you and your family. 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.
If you're using the free 30 hours free childcare scheme for a nursery place, you can still benefit from childcare vouchers for any additional childcare costs. HMRC have confirmed this is correct and are in the process of removing conflicting information from the Childcare Choices website, that had confused parents thinking they had to join the Government's new Tax Free Childcare Scheme to be eligible.
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.
What are childcare vouchers?
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.
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