Sign up for childcare vouchers first and then take a long hard look at Tax free childcare….
I am sure that you will have heard something by now, about the Governments “Tax Free childcare” due to go live in April. Designed to help working parents, it is being marketed by the government as a fantastic solution for everyone.
We are not sure that it will be the best solution for all parents and this fact has been picked up by Martin Lewis, of Moneysavingexpert too. So, we wanted to give you a summary of Tax Free Childcare compared with the childcare voucher benefit (that is still available for parents to sign up to until APRIL 2018) and fill you in on some of the facts the government are keeping quiet about!
Helping employees moving forwards:
We provide another benefit that makes a huge difference to employees when contemplating their return to work decision.
It is called Workplace nursery benefit. Available since 1988, it has remained unchanged by the government and allows an employer to offer all employees using a nursery, the ability to save significant amounts on their monthly childcare costs. As long as a number of key conditions are satisfied by the business and the nursery (which we facilitate), workplace nursery benefit can allow an employee to save tax and NI on ALL of their fees, not just the amount achievable with vouchers.
As an example, if an employees childcare costs are £1,500 a month, a basic rate tax payer can save £4,536 a year using this benefit! This benefit can be offered at no cost to the business (or with a saving in employers NI payments).
We are recommending to all our clients, that they re-promote childcare vouchers to employees now and advise them that they can sign up to the benefit, even if it’s just for £1 a month. This means they are in the scheme and have options moving forwards.