Childcare vouchers vs tax free childcare?

[OlderthenYoungerNow]

I've got a 17 month old who goes to a childminders 3 days a week for 48 weeks per year and costs £660 a month. We are due our second baby (any day now) who will also be attending the childminder from Sept 2020 for the same 3 days at the same monthly cost.

We currently are paying for our daughter from our monthly salaries and paying into the old childcare voucher scheme the max allowance each to save for the year both kids will be at the childminders before the older one qualifies for free hours.

So we have both got salary sacrifice schemes for £240 each (I think it's £240, around there anyway) going into two different voucher schemes from two different employers plus paying up front £660 directly to the childminder.

After doing a touch of research, I think it would be better for us to put the whole £480 + £660 from our current account into the new tax free scheme monthly and then pay for the older ones care and keep the additional banked for September.

Is that right? The second baby isn't quite both yet but presumably that doesn't matter.

Bit annoyed I've not thought about this before.

Any advice greatly received.

Both can do childcare vouchers

Only one can do tax free childcare

Use the MSE calculator

www.moneysavingexpert.com/family/tax-free-childcare/#scheme

I used the calculator that said we would be better off with two children in childcare but that won't be the case until Sept 2020 technically so wasn't sure about the period of time I'm on mat leave, with one in childcare and one at home but while we are saving for the second, if that makes sense.

Sorry, might not have been clear.

Also, do you mean both parents can't pay into the tax free scheme? Money just comes from a joint account so presumably it's not clear whether I'm paying it all, or both of us?

While it may be that the taxfree account is in one oarents name, anyone can pay into the account so yes, you can use your joint account to pay in.

And im in a similar position to you - although from what i can see so far with 2 children the taxfree system gives more benefit. But i havent found a calculator where you put in all your details and it tells you what to do!

Childcare vouchers for 2 is better value as soon as funded hours kicks in.

Ah OK. So when using the calculators I probably need to also do a dummy run of the forecast for when we have 30 free hours for one and are paying for the other. Because the 30 free hours is over term time only and we have 48 weeks of childcare, we will be paying slightly over what we are now but not as much as next year with both being paid 100%.

It's bloody confusing!