Childcare options for returning to work

Burt1990

Hi,

I am a higher rate tax payer that is expecting 2nd child. I was fortunate with 1st child (who is now in full time school and doing after school clubs etc.) that I was able to return to work flexibly/part time, but took on a new, full time role 2.5 years ago.

With this baby, I am looking into my options for returning to work.

I am not too keen on the nursery option (just personal preference, not great recommendations for my area, from what I can gather). So I am considering a nanny/childminder.

With the the new govt. free childcare (I believe 30 hours a week from 9months?) I have had conflicting information on if a nanny is eligible for this. 

The company I work for is small and has had no one previously take advantage of any salary sacrifice schemes/ childcare vouchers etc, but they are supportive with whatever route I would like to go down, but it's up to me to find the options.

In anyone else's experience, what's the most cost effective/tax efficient way to have support returning to work from 9 months please? Any pitfalls/things to consider? I haven't done much of my own research yet, but guessed this would be a good place to start, grateful for any advice.

Thanks in advance

Exodi

Childminders can be covered under the governments free childcare scheme but you should always check with individual providers.

Childcare vouchers are no longer a thing (or at least not open for new applicants):

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

Due to this, sal sac for childcare isn't a thing anymore either, it was replaced by tax free childcare (touched on below) , which made it more accessible than just being limited to the fortunate few with access to sal sac.

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

In reality the 'most cost effective/tax efficient way to have support returning to work from 9 months' would be to use the 30 free hours soon available from 9 month olds and also using the Tax Free Childcare Scheme (which confusingly is not tax free and actually has nothing to do with your tax status) - it is effectively an account you pay your childcare provider from and the government adds 25% to the money you put in there. Of course you should ensure providers are signed up to it.

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