The Childcare Voucher Scheme is a Government-approved, tax-efficient way of paying for childcare. Members of the scheme can exchange up to £243 a month (£55 a week) of their gross salary for childcare vouchers.
The replacement scheme, Tax Free Childcare is designed so that for every 80p put in by a member of the scheme, the Government will add 20p. Members can get up to £500 every 3 months (£2,000 a year) for each child to help with the costs of childcare. It is also open to self-employed individuals which the Childcare Voucher Scheme was not.
The changes have been delayed by 6 months due to opposition from some parents who expect to benefit less under Tax Free Childcare but it does appear that the Childcare Voucher Scheme will be closed to new members in October 2018. We will keep you up to date with any further changes if they occur.
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