Childcare Voucher Scheme
After an earlier extension, the final date for new entrants to the Childcare Voucher Scheme is fast approaching. Eligible employees can still join the scheme if their first wage adjustment, and receipt of vouchers, has gone through before midnight on 4th October. This will be the last opportunity for employees to take advantage of the current voucher-based scheme.
- They have not successfully applied for tax-free
- They remain in your employment.
- Their child is still eligible.
- They do not take a career break longer than one year.
- They are transferred by TUPE to another employer.
Tax-free Childcare Scheme
After 4th October, eligible parents can apply for the Government-backed tax-free childcare scheme. The scheme will provide access to 20% towards the cost of childcare up to a maximum of £2,000 per year per child (£4,000 for children who are disabled).
What should employers do now?
- Let employees know that, if you currently have a childcare voucher scheme in place, it will soon close to new entrants.
- Make sure employees know the payroll deadline they will need to meet if they want to apply to the voucher scheme before the deadline.
- Let employees know that future childcare benefits will be accessed directly from the government at https://www.childcarechoices.gov.uk/
- Update any internal documentation that references the childcare voucher scheme.
If you need any help with implementing the Tax-free Childcare Scheme or the Childcare Voucher Scheme please get in touch.
(Image Source: Shutterstock)