Childcare Vouchers: cut childcare costs by £1,000/year Discussion Area

sheramber

yes you use any vouchers you have before moving to tax free childcare scheme

https://www.gov.uk/help-with-childcare-costs/childcare-vouchers

Ladyst

Just found out when I spoke to my employer's scheme that you can't transfer to a different scheme if you change employers and they use a different voucher provider; you'd still count as a 'new entrant' even if you've been getting vouchers before October 4th when the scheme closes. This means I can't move job for FIFTEEN YEARS if I want to keep getting vouchers! Seems totally unfair.

sheramber

It tells you that on the government website.

Similarly, you may move to an employer who does not run a child care voucher scheme. Not all employers do. It is voluntary.

So you choice of new employer was limited anyway

Sarah_Connolly

Having done the comparison for the coming year we would save £500 switching from vouchers to the new tax free scheme. However as my youngest would be eligible for 30 hours free childcare from 3 (he starts nursery shortly at age 1) is there a way of comparing long term savings?
My eldest is also in childcare before/after school and to note we have no local family so will be relying on childcare for school holidays.

anita116

Both my daughter and son-in-law work. There little on is 10.5 months old. My daughter is claiming childcare vouchers but my son-in-law's employer does not offer them. We cannot work out whether it is better to switch or not. Any advice would be greatly appreciated please. Thanks.

Hairymonster

Finding working out things really complex- especially with pending changes in childcare so wondering if people can help?


I am self employed (salary + dividend) and wife is employed. Wifes employer signed up to edenred childcare vouchers which she pays each month salary sacrifice. My business doesn't have childcare vouchers as benefit would be minimal.

we have one child so right now vouchers is suitable for the salary sacrifice saving.

Childcare costs at the moment at £365.50 per month (£243 vouchers + £122.50 cash)

Baby No 2 arrives November- starting Nursery Oct 2019.

From Dec 2018-Oct our costs will go down to £187.50 per month so will accrue an additional £55.50 of vouchers which we can use later but once these run out I am assuming we will be cheaper moving from childcare vouchers scheme to tax free scheme?

We both earn under £100k per annum.

When both babies are at nursery (2 x full days) our monthly cost will be £700 per month so under new government scheme assuming this will mean government will pay £140 per month x 12 = £1680 compares to the £933 saving for vouchers?

Also is it possible to resign from the childcare vouchers scheme and sign up to the new scheme when it becomes more beneficial? What is the process?

sheramber

https://www.gov.uk/help-with-childcare-costs/tax-free-childcare

Roxit

Hello

Wondering if anyone can help, I seem to have got myself very confused about all this, and not sure what would be best for us!

Our situation is currently as follows:

My husband and i have a business which is a Partnership, so he is self employed while I am employed by said business.

I currently get child care vouchers but rather than via salary sacrifice, the business effectively pays for it as an Addition-to-salary.

When I joined the scheme we only had one child and this pretty much covered his childcare costs at 2 days p/w.

We now have 2 children going to a childminder 3 days p/w, plus my eldest also goes to Nursery 1 day p/w, so child care costs have gone up significantly!

My eldest should get 30 free hours as of next month when he turns 3, but there will still be a big bill each month for him!

Does anyone know if we could pay into the tax free childcare scheme via our business, like we currently do with the vouchers? If this isnt possible,, can I be in the childcare voucher scheme and my husband join the new tax free childcare scheme, as this scheme is open to self employed people too? or do we both have to be in the same scheme?

Just trying to figure out the best and most cost effect way to go about it, but it is so confusing as our situation is slightly complicated!! Any help or suggestions would be greatly received!

sheramber

You cannot use both vouchers and tax free scheme.

The tax free scheme is not paid through the employer . It is an account where money is paid in by you, your husband or anybody else who wishes to contribute to the childcare costs.

https://www.gov.uk/childcare-calculator

doppers

My partner has recently started a new job and they do not offer the childcare voucher scheme. I am already on the voucher scheme, but when she tried to sign up for the tax free option it said that she couldn't use that scheme unless i stopped using the vouchers? I just wanted to confirm if that was correct and if it would be better if i did come off the scheme as the voucher option best suited our needs only having one child and low childcare costs?

Thanks