Childcare vouchers are a cost-saving employee benefit available to working parents. They operate as a salary sacrifice scheme, where contributions are taken before the usual tax and National Insurance deductions.
The exact amount you can save depends on your rate of tax, the amount of NI you pay and the total value of childcare vouchers you redeem every year. The figures below are for indicative purposes, for more information you should speak to your employer or a childcare voucher provider (see www.cvpa.org.uk for a list and information on how to claim).
During the roll-out of the government’s tax-free childcare scheme in 2017, childcare vouchers will remain open to new entrants until April 2018. Existing users will be able to continue claiming vouchers.
For more information see www.gov.uk/browse/benefits/tax-creditsMore on fees and funding