Benefits of Childcare Vouchers for Working Parents

Parents Save Money using Childcare Vouchers

Your employer is able to provide childcare vouchers for you as a salary sacrifice. For the 2010/11 tax year the childcare voucher allowance is £55 per week (£243 per month). This amount is Tax And NI free and allows substantial savings of up to £903.96 per annum for a 20% tax payer and £1195.56 for a 40% tax payer. The employer usually takes the value of your voucher off of your gross salary before tax, via a salary sacrifice.

Childcare Vouchers can be used for a Nanny, Play School, Nursery, Au Pair, Crèche, Pre School...

Childcare vouchers can be used for almost any registered or approved childcare for children aged between 0 - 15 years (16 years if disabled). If you use a day nursery, childminder, nanny, breakfast club, after school club or holiday club, or even if you pay for after school activities at a boarding school, to name but a few, you can use childcare vouchers.

Your employer purchases vouchers from a voucher company, and normally deducts the cost of the voucher from your gross salary. You then pass the voucher to your carer or arrange an automated payment system to the carer. All payments to the carer are referenced to enable the carer to attach the payments to your account with them. There are no costs involved for the carer.

Your employer can also arrange to make payments directly to the carer each month, without the use of an approved voucher company. Please email Lesley at Head Office for further details – lesley@countrysidenurseries.co.uk.