Reduce your FunTech fees by using Child care Vouchers

What are child care vouchers?

This is NOT a tax credit or a scheme for families with low incomes

Childcare Vouchers are only available to working parent, who pay TAX and NI. Each working parent can benefit from significant tax and NI savings of up to £1,195 a year using Childcare Vouchers, and up to double the amount if both parents are working.

Status	Annual Tax exempt amount	Savings
Basic rate (contracted out) 20% tax 10.4% NI	£2,916	£886
Basic rate (contracted in) 20% tax 12% NI	£2,916	£933
Higher rate in the scheme prior to 6/04/11 40% tax 2% NI	£2,916	£1,225
Additional rate in the scheme prior to 6/04/11 50% tax 2% NI	£2,916	£1,516
Higher rate category 40% tax 2% NI	£1,484	£623
Additional rate category 50% tax 2% NI	£1,166	£606

As a guide if you earn above £45,391, you are likely to fall into the higher rate category. If you earn above £151,484, you are likely to fall into the additional rate category.

Eligibility

Employers must offer childcare vouchers to all employees and both male and female employees should be able to participate in the scheme.

Eligibility conditions

To be exempt from tax and NI for childcare vouchers:

• Your child must be under 15 (until 1st September following their 15th birthday) or if your child is disabled, under 16 (until 1st September following their 16th birthday)
• You must have parental responsibility for the child - the child must be your child, your stepchild or a child for whom you have parental responsibility
• The childcare must be Ofsted registered

Please note: although childcare vouchers are beneficial to the majority, they aren't always a financially sensible option and tax credits can be affected.