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Childcare vouchers - how do they work?

(9 Posts)
Needsleepnow87 Tue 06-Feb-18 13:35:27

So I’m going back to work in May and I’ve been told to hurry up and register if I want to benefit from the salary sacrifice voucher scheme.

But I don’t have any idea how they work? The current scheme stops for new people from April and I’ve been told I need into register and actually use vouchers before this ends.

So my question is, would it be worth registering and putting my DS in nursery in April (originally was going to be May). But then, I’m not actually earning anymore, maternity leave ran out, so I guess I can’t do this anyway???

With the new scheme, is it any better or just as good? Government puts in £2 for every £8.

Twofishfingers Tue 06-Feb-18 13:57:59

it depends. It will be replaced by 'tax free childcare'. if you search that into Google in can see if you will qualify.

nannynick Thu 08-Feb-18 20:01:56

With one child, your max contribution under Tax-Free Childcare is £2000 a year (if you both earn under £100k), under childcare vouchers the max saving is I think is £933 per parent (if you both earn under £45k). So there is not that much in it... if you both earn under £45k and your childcare cost is £10,000 a year or more.

You could try using the various calculators on the childcare voucher providers websites and also the calculator on GovUK: www.gov.uk/childcare-calculator

coffeeforone Tue 13-Feb-18 18:05:53

I keep reading that studies show the old scheme is better for most people.

If you have 1 child, childcare costs are under £10k per year and you are a basic rate tax payer then the old scheme is better.

If your childcare costs are more than £10k per year per child then the new tax free childcare will be better regardless of income.

We saved an extra £752 per year moving from vouchers to TFC.

Shimmershimmerandshine Tue 13-Feb-18 18:11:41

Yes, when mine were in nursery we'd have been better off with the new scheme. I have been confused about the clamouring to get onto the voucher one. I'm on the voucher one but my dc are at school and the vouchers cover all my childcare.

greathat Tue 13-Feb-18 18:14:08

You only need to salary sacrifice £1 to be in it as far as I'm aware...

mollifly Tue 13-Feb-18 18:20:46

Double check but they are stopping childcare vouchers in April for a lot of places and replacing with a worse system

mollifly Tue 13-Feb-18 18:21:29

Completely didn't read your post properly... I'm sorry!!!!

Muddlingalongalone Tue 13-Feb-18 18:22:12

greatthat is right. I had dd1 at the end of March in 2011 and had to register and get 2hr to process it before April because of the changes for higher rate tax payers. I just did £1 until I went back to work then increased to full amount.
Be careful if you get tax credits though - i can't remember exactly but I think if you use the new system you have to stop claiming tax credits as well but that might only be with 30hrs funding.

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