Childcare Vouchers (Old scheme) – This employer led scheme allows you to provide a member of staff with childcare vouchers worth up to £55 per week completely tax free. You can gift the vouchers instead of salary (salary sacrifice). You save the employer’s national insurance and your staff save the tax and employee’s national insurance.

A new wider ranging Government run scheme called Tax-Free Childcare starts early 2017. This allows a staff member to open an online account into which the staff member pays for Childcare. For every 80p paid, the Government tops up with 20p, representing 20% of a maximum cost of £10,000 p.a.

To qualify, parents will have to be in work, and each earning around £115 a week and not more than £100,000 each per year.

This scheme will also apply to self-employed parents.

This scheme does not require the employer to be involved.

Verified by MonsterInsights