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Childcare Vouchers & Tax-Free Childcare



On 4 October 2018 the existing Childcare Voucher scheme was closed to new entrants and was replaced by the new Tax-Free Childcare scheme.  Employers do not have a role in the Tax-Free Childcare Scheme, it is administered by HMRC and parents are responsible for managing their Tax-Free Childcare accounts.

Childcare Vouchers 

Employees who joined a Childcare Voucher scheme on or before 4th October 2018 might be able to keep getting vouchers.

How much employees can take depends on the amount you earn and when you joined the scheme.

If employees get Tax-Free Childcare they cannot continue to claim childcare vouchers or directly contracted childcare if they successfully apply for Tax-Free Childcare.

Tax-Free Childcare

Under the Tax-Free Childcare scheme those eligible can claim up to £500 every 3 months (total of £2,000 per year) for each child to help with the costs of childcare.

Those in receipt of tax-free childcare will receive, from the Government, £2 for every £8 paid to an approved childcare provider via an online account.

Childcare provider

The childcare provider must be signed up to the scheme before the employee can pay them and benefit from Childcare Vouchers or Tax-Free Childcare; employees should check with their provider to see if they’re signed up.

Getting it right

If you want further information or advice on childcare voucher schemes under the existing rules or the new Tax-Free Childcare system, we would be happy to assist.

For further help and advice, speak to one of our advisors by calling 01455 444222 or complete our online enquiry click here and an advisor will contact you shortly.