Childcare Vouchers - Please explain!!

[sezamcgregor]

I've recently starting working full-time, putting DS in breakfast club.

FOOLISHLY assumed BC was registered with Ofsted for easy reclaim of costs via Tax Credits.

Advised this morning that they take Childcare Vouchers.

Spoken to colleagues, and they have never been offered them so will have to speak to employer when he arrives.

But what are childcare vouchers? How do they work?

I've never been full time before and have always just claimed nursery fees before DS was school age, so have never come across them before.

Can I still claim sportsclub during school holidays through Tax Credits, or is it an either/or thing?

Thanks in advance!

It's a scheme that means you can give up to £243 of your salary each month and you are not taxed on this amount. Companies like edenred administer the service. Your employer has to set it up.

www.edenred.co.uk/

Take a look and have a read then show your boss. You can only use the vouchers for ofsted registered care

Not sure about tax credits I'm afraid.

Basically childcare vouchers are a salary sacrifice scheme that means you can get some of your childcare costs tax free. Depending on your tax rate, a fixed amount is taken from your monthly salary pre-tax and you can then use this money in the form of vouchers for childcare. Many employers offer the scheme as there are benefits to them offered by the government to do so.

The blurb estimates that you can save up to £1000 a year by effectively not being taxed on a portion of your salary each month - that portion is dedicated to childcare.

I believe childcare vouchers can be used for a number of after school holiday/holiday club type things too? Not too clear on this - it'll be a while before DD to that age!

Explained as above - they come "off the top" of your salary so you pay tax on a smaller amount and you manage them via an online account. Some expire after a year, some don't - depends on which company uses them. Some holiday clubs etc accept them.

Be careful to check how receiving child care vouchers will affect child tax credits. For some people they are worse off if they get vouchers as it affects eligibility for tax credits.

Not sure of details as I have never been able to claim tax credits but I think there is a calculator on direct.gov you can use to see if you will be better off with vouchers.