Changes to Childcare Vouchers from autumn 2015

Published 8th Dec 2014 by Events

​We currently offer Chamber Childcare Cheques specifically to assist employers to help working parents with their childcare costs as part of their salary. The Government will introduce a new tax-free childcare scheme from autumn 2015, giving parents a tax refund of up to 20% of childcare costs.

Parents will be able to register for the scheme via the website, however it is possible that the new scheme will leave many parents worse off.

The current employer led Childcare Voucher Scheme can provide the basic-rate taxpayer with savings of up to 32% of childcare costs, tax-free childcare only provides savings of up to 20% of childcare costs. 

The existing Childcare Voucher Scheme will continue to run alongside tax-free childcare, however after autumn 2015 the Childcare Voucher Scheme will no longer be available for new entrants. At this point existing members who have registered before autumn 2015 will continue to benefit.

Childcare Vouchers are available to working parents regardless of whether they have a partner who is also in work. However, the new tax-free childcare will not be available to anyone who has a stay at home partner – meaning many families will be ineligible.

By joining the Childcare Voucher Scheme prior to autumn 2015 you will have a choice whether to remain on the current scheme or to switch to the new tax-free childcare from autumn 2015 onwards, depending on which scheme offers you greater savings. Generally parents with modest childcare costs will benefit more by continuing to receive Childcare Vouchers.

If you want to discuss how you or your company can benefit from the Childcare Voucher Scheme please contact Jan Jevons 01924 311602 or visit the website.


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