Childcare voucher schemes, financial benefits to both employees and employers, but…

Employers, did you know… the salary sacrifice Childcare Voucher scheme is due to close to new entrants on 4th October 2018. This means that, for new joiners, the employee needs to have had their first wage adjustment and be in receipt of vouchers before midnight on 4th October 2018 – for a majority of organisations, this means the September payroll period.

As well as providing direct savings for parents, Childcare Vouchers save employers millions of pounds on National Insurance Contributions, facilitate positive discussions between employers and staff about childcare, and promote flexible working practices.

Here’s how you can make a difference and Keep Childcare Vouchers open:

·        Sign the business pledge to #SaveChildcareVouchers. Email [email protected] with the name of your business and the number of your employees to find out more.

·        Encourage your employees who have childcare costs to register for this as the benefits of having the scheme are really tax efficient, going to close it soon, so get it up and running . Even if you don’t use the vouchers now, you might use it for after school clubs etc. they are closing it to new people as of October. If employees join and just take the minimum, for now, you can increase it later.

As Childcare Voucher schemes are due to be closed to new entrants (parents wanting to join the scheme) from October 4th, 2018. This means that, for new joiners, the employee needs to be in receipt of their first vouchers before this date.

This is because last year, the government rolled out a new scheme called Tax-Free Childcare (TFC) which changes the package of financial support it offers to working parents. https://www.gov.uk/help-with-childcare-costs/tax-free-childcare check out the details, and encourage your employees to do some calculations, if they choose your workplace scheme they should get in quick as the deadline for at least one of these schemes is approaching.

Many families stand to lose out under Tax-efficient Childcare and will be better off joining, or staying on the employer administered Childcare Vouchers scheme, please help save these schemes ...