What is Tax-Free Childcare?
Early in 2017, the government launched a new scheme called Tax-Free Childcare, or TFC for short.
In a nutshell, through TFC the government will pay £2 for every £8 parents pay for childcare. This is capped at £2,000 a year. While some working parents will be better off with TFC, we believe that most families will save more money with childcare vouchers.
Childcare voucher schemes, like the one we offer, will close to new entrants in October 2018.
If you’re new to childcare vouchers you must join a scheme and have the value of your childcare voucher taken from your pay by the closing date. When the scheme closes to new entrants you can keep getting vouchers for as long as you remain eligible.
If you’re already registered for childcare vouchers you must have at least one voucher taken from your pay in every rolling 12-month period through your current employer. If it’s more than 12 months since your last childcare voucher, your eligibility has lapsed, so you need to receive one by the closing date to stay on the scheme.
From October 2018, TFC will be the only scheme open to new joiners. So, if you're a parent, it's important to find out which scheme works best for you; and if you'd be better off with childcare vouchers, you'll need to sign up and have the value of a childcare voucher taken from your pay by the closing date.
After the closing date, you may lose your eligibility for childcare vouchers if:
You move jobs (your new employer’s scheme won’t be able to accept new joiners), or change PAYE payroll with your current employer
You stop work, become self-employed, are made redundant, take an unpaid career break of longer than a year
It’s more than 12 months since your last childcare voucher
Your youngest child turns 15 years old
You should also check out the Government Childcare Choices website and Check what help you could get with childcare costs calculator for a more personal illustration.
Does your employer offer childcare vouchers from Computershare? Sign up today and give yourself a choice.Sign up