To not understand tax free childcare and vouchers

[wanderlove]

I cannot get my head around this! I've been on the government calculator but it just tells me what I would be entitled to not which is better. Currently receive childcare vouchers from my employer. £243 a month that is taken before tax so I save the tax on it (I think approx £60 a month). My partner is self employed so can't get childcare vouchers.

Would we be better off moving over to tax free child care? We both work full time and have three children. One is full time childcare and 2 wrap around care. Most expensive months are around £1200 and cheapest months are around £700.

I know once I move off vouchers I can't get back onto them so trying work out which is better value for us. AIBU to ask for help. I'm not stupid and usually can work this kind of thing out but this has me stumped! I know the government pay £2 for every £8 but is there a cap on it?? Please can someone help me work this out....

Yes, on those figures tfc would be much better.

I find tax free childcare way easier as its one payment to nursery where vouchers were my vouchers, dh's vouchers and then some cash which was a pain. Also, if you're on a low wage you can't have the full vouchers as it would take you below minimum wage where that isn't a consideration for tfc

I remember seeing Martin Lewis on this morning talking about it and had a useful diagram comparing the 2 systems and he said a fair few times that families with several children in childcare would benefit more from the TFC system. I only have 1 but missed the deadline for joining a vouchers scheme (Oct 2018 I believe). My childcare is just over £400 a month and I pay in £325 to my child's account and the gov top it up and I pay the nursery. All very straight forward.

With your husband being self-employed I can’t see how tax-free childcare wouldnt be better for you.

Yes you have one log on then separate accounts for each child so can pay in what you need across each every month.

I have heard some horror stories but we’ve never had any problems with it

Just to reiterate - no-one can now join the childcare voucher scheme so if you stop it you can't go back to it and if you change employers you won't be able to join theirs even if they have one.

Sorry to hijack but does anyone know if you can use the tax-free childcare towards a child minder?

We're TTC and I'm trying to work out costs. The nursery near us is £69.50 per day but some childminders are £5ph which we'd need drop off at 8am and pick up at 6pm so £50pd. Based on four days per week.

Yes you can use TFC with a childminder, just ask them when you’re looking around.

Thanks so much for clarifying.

@Butterflyflower1234 they just have to be registered with Ofsted.