Keep childcare vouchers going with new gov "Tax-Free Childcare" scheme?

[manalishi]

So the new government "Tax-Free Childcare" coming in the Autumn seems simple to use. 20% off childcare done through a government run account. Easy.

I currently use childcare vouchers via my work to pay a portion of my nursery costs. (which in technical gov jargon is called "Employer-Supported Childcare"). They don't specifically say you have to shut this down and replace with the "Tax-Free Childcare" scheme.

So can I keep both running at the same time? Is anyone else planning to do this?

Gov.uk says "but those already registered by this date will be able to continue using it "

The mumsnet explainer doesn't explicitly say either. "those already registered by this date will be able to continue using it for as long as their employer offers it." (I could interpret that to mean employers will all just stop offering vouchers straight away for administrative convenience but I'm not sure.)

Any help would be appreciated please... I'm a little confused.

You can stay as you are if your employer carries on, which most will I think. OR you can swap to the new scheme.

You can't do both at the same time
Of course if you come out of the childcare vouchet scheme you can't go back in.

thanks Goodpresentideaplease.

ok, so it is an "either / or" choice.

Now I need to size up which option saves me more money then.

If I've worked this out correctly:

My vouchers are limited to £243 per month*. So avoiding income tax and NI, I think it's roughly £72/mnth

The new Tax-Free Childcare gov scheme is 20% off the total cost of childcare. From a £900/mnth childcare bill thats £180/mnth

So the gov scheme is the better option to the tune of roughly £108.

Have I got that right?

*(I'm basic rate taxpayer)

Do you have a partner?

How many children?

Are you getting any tax credits (new scheme not available to families getting Universal Credit)?

As a rule a single parent (basic rate) is better off with existing scheme if annual childcare costs are less than £4,660.

A couple (basic rate) both employed are better off with existing scheme if annual childcare costs are les than £9,330

But remember not to just consider one year... if you're better off initially with new scheme but your childcare costs go down over the next few years you should consider this.

Can you have one partner running one scheme and one partner running the other?

Nope.

Both partners can get childcare Vouchers
Only one can get Tax Free childcare

If one is getting Tax free childcare the other cannot get childcare vouchers

It's unclear how this will be regulated but you would be liable to a fine if you are found to have claimed both

ok thanks