Tax free childcare - how does it work? What do employers need to do?

paulfoel

Used to get childcare vouchers but I know that's stopped now.

I work via an umbrella company (basically I'm self employed but legally they're my employer but all they do is my pay etc). I remember previously you had to pick an umbrella that did this and then you'd tell them how much per week to send to childcare vouchers.

I've applied myself for tax free childcare which I understand is the new way and a bit different. How does it work now?
Do I need to get my "employer" to deduct from my pay and pay into this? Or do I pay in manually myself? 

sheramber

https://www.gov.uk/tax-free-childcare

If you get Tax-Free Childcare, you’ll set up an online childcare account for your child. For every £8 you pay into this account, the government will pay in £2 to use to pay your provider.

Your employer is not involved in any way.

paulfoel

Yeh so I see.....

Well on the plus side the system is simpler but you only save 20% now.

With employer NI, NI and tax I used to save almost 50%.

Icequeen1

paulfoel said:

Yeh so I see.....

Well on the plus side the system is simpler but you only save 20% now.

With employer NI, NI and tax I used to save almost 50%.

Tax free childcare is an amount per child, whereas vouchers were per parent up to the max amt of £55 per week (and then the tax/ni saving on that amount).