The government launched a new scheme in April 2018 called Tax-Free Childcare (TFC). This currently runs alongside the employer supported Childcare Voucher scheme for existing members. From 5th October 2018, the Childcare Voucher Scheme was closed to new joiners.
If you are already receiving childcare vouchers and wish to switch to TFC:
- Please advise HR as soon as possible that you are leaving the scheme.
- You will need to leave the scheme on the Sodexo website.
- Sign up for TFC here https://www.gov.uk/help-with-childcare-costs/tax-free-childcare
You should be aware that if you choose to switch to Tax-Free Childcare, you will not be able to switch back to the Childcare Voucher Scheme at a later date.
Remember, as a rule of thumb TFC is better if a family’s childcare cost is over £9,330 for a basic rate taxpayer and £6,252 for a higher rate taxpayer. Despite the large headline number of £10,000 childcare cost giving a £2,000 saving, the government estimates the average family spend on childcare is £3,276 a year, which would provide a saving of £655 per year under TFC, so check how much you spend and the saving you can make under both schemes
Please click on the Tax-Free Childcare guide below to find out more information about Tax-Free Childcare.
Alternatively if you require information on Tax Free Childcare please visit www.childcarechoices.gov.uk