Childcare Vouchers. Finance Tips Surviving the Credit Crunch, Top Tips for surviving the credit crunch

  Childcare Vouchers

 

The use of childcare vouchers can save your family up to £2,391 per year!  Many employers have avoided setting up these schemes thinking that there is too much admin involved and they may even think there is a cost implication- but in actual fact there is a saving implication for them too, and the more employees on the scheme the more money they will save on national insurance contributions. Our aim is to inform our dedicated savers about the scheme and to equip you with the information so you can sell it to your boss!

Who is eligible?

If you are a working parent or guardian and you have a child under the age of 16 who is in some form of childcare then you may qualify.  Both parents/guardians can claim thus increasing the amount you can save.

I claim working Family Tax Credits and/or I earn minimum wage- Am I eligible?

This may not be the best option for you but please seek advice from your local Tax Office.

What forms of childcare apply?

Most forms of childcare are accepted on condition that the childcare provider is a registered or approved company

  • Childminders

  • Breakfast clubs

  • Nannies

  • Nurseries

  • Holiday clubs

  • After school clubs

  • Playgroups

  • Pre-school

  • Au-pairs

A list of registered companies is available on the following websites:

www.ofsted.gov.uk- England
www.childcareapprovalschemewales.co.uk- Wales
www.carecommission.com- Scotland
www.dhsspsni.gov.uk- Northern Ireland

 

What if I have more than one child?

Most childcare voucher providers allow you to take out vouchers and distribute them any way you choose, up to £243 per month or £55 per week, you can take out any amount up to the maximum although this affects what you will save.

Who provides them?

There are several childcare voucher providers but they can all save you the same amount. The difference between them is very small and the best one for you is usually something your employer will decide- this is because the variance is to do with admin and how much the employer could save. To get your employer started there are several options below:

  • Busy Bees

  • Early Years Vouchers

  • Kiddivouchers

  • Sodexo

  • Fideliti

  • Allsave

  • Educare

The choice is vast and you may be wise to find out where your childcare provider registered with in order to save your employer some time.  (If your employer likes the sound of a childcare voucher provider and your nursery or other is not registered with them, the childcare voucher provider will send you information to get it set up).

How much do I stand to save?

The amount varies depending on your tax bracket.  Based on the maximum voucher of £243 per month or £55 per week, as a 20% taxpayer you could save up to £75.33 per month or £903 per year on tax and national insurance.  If you are a 40% taxpayer, you could save up £99.62 per month and £1195.44 per year.  If you take the maximum amount of vouchers each month, even if you do not need the whole amount, you can keep the vouchers to pay for expensive months for example, the summer holidays.  Remember your partner can also join the scheme so you could double those savings!

For more information on childcare vouchers visit www.hmrc.gov.uk/childcare

 

 

Childcare Vouchers

Mortgage Worries

Best Credit Cards

Best Current Accounts

Best Savings Accounts

Managing your Creditors

Self Regulated Debt Management Plan

Credit Crunch Stress Survival Guide

   

   

 

 

    ‘