Childcare vouchers? How do they work?

[Deleted User]

Our company has the scheme but the website is a bit vague, i am a higher tax band payer. I've been on the childcare voucher website and its a bit vague, can anyone explain it to me in laymen terms please.
Also if my partner has a childcare scheme also could we both join and unite our vouchers?

thunderbird

Basically you choose an amount to be deducted from your salary - this comes off your gross salary so that you make a tax saving.
I think for higher tax payers the max you can now pay is around £120 per month, for lower rate tax payers is it £243 per month.

This may have implications for your pension etc as it lowers your actual salary.

It depends on the scheme your company has as to how it works. With my company we pay that amount directly to the specified childcare provider each month.

FatVonD

I'm not sure of the maximum amount nowadays but basically you are paying for the childcare vouchers before tax deductions so as a higher-rate tay payer you are saving 40% on the cost of childcare.

Your carer needs to be registered with the scheme providing the vouchers so must be a proper nursery/registered childminder and I believe that both parents can combine their allowances.