Good News! WEF 10 Dec 07 all members of the Armed Forces will have access to a new Armed Forces Childcare Voucher Scheme run by Sodexho Pass Ltd.
Because I can't do links (d'oh) here is the text from the leaflet:
The scheme will give Service personnel the option of reducing the cash element of their salary in favour of childcare vouchers that can help towards the costs of registered childcare. Suitability for the scheme will depend on your personal circumstances.
? Childcare vouchers can be used to pay or part-pay for registered childcare in the UK and, overseas, in Service locations. The vouchers are for a child or children for whom the Service person has parental and financial responsibility and are not transferable. The vouchers can be used until the 1st September following the child?s 15th birthday.
? Scheme members can choose to receive between £30 and £243 per month in childcare vouchers instead of cash salary from the MOD. Tax and National Insurance Contributions (NIC) savings are made because they are only paid on the reduced cash salary. Total savings will depend on the individual and family circumstances but can be as much as £1,000- £1,200 per year.
Q. How does it work?
A. It can seem quite complicated so you need to read this, and other information, carefully. The scheme relies on you, the Service person, agreeing that you will be paid less cash salary. Instead, you get ?paid? a combination of cash and childcare vouchers. Let?s say you currently get paid £1500 a month (pre-tax) and now want £100 of childcare vouchers a month. You have to agree to be paid £1400 a month (pre-tax) in cash plus £100 in childcare vouchers. You aren?t buying vouchers ? they are actually part of your total ?pay?; they are part of your total remuneration. You can then use the vouchers to pay (or part pay) for your childcare, as long as the childcare provider is regulated. Don?t forget that you can only use the vouchers for an eligible child ? basically, a child that you have financial and parental responsibility for.
Q. So why should I bother?
A. Well it is completely up to you but you can save tax and National Insurance Contributions because your cash salary has reduced. If you opt for the maximum amount of vouchers (£243 per month ? the HM Revenue and Customs limit) then you can save between about £1,000 and £1,200, depending if you are a lower or higher rate taxpayer.
Q. So the MOD is paying me in childcare vouchers?
A. In effect, yes. The MOD will still continue to pay your total salary each month it?s just that some of it will be in the form of childcare vouchers. The vouchers will be issued to you by Sodexho Pass Ltd, the scheme provider, for the amount that you have agreed to. This could be paper vouchers or credits to an electronic childcare account, depending on how you want to do it. Remember, if you choose to have a part of your salary paid in childcare vouchers you will have less cash salary at the end of each month.
Hope all this made sense . If anyone has any questions I will see what I can find out.