Childcare vouchers or new tax-free childcare scheme?

[Craig@Clarity]

Have you tried a search?

BOOM!

[northernladuk]

BOOM!

You line em up and I'll knock em down

[TheCyclingProgrammer]

I thought the new scheme was still delayed after it was supposed to start early this year - has it come into effect yet? I've always tried to do directly contracted childcare (contract with nursery direct with MyCo and pay them directly) instead of faffing with vouchers, much easier but guess not an option with an umbrella. The maximum you can get is determined by your total salary.

[psychocandy]

I thought the new scheme was still delayed after it was supposed to start early this year - has it come into effect yet? I've always tried to do directly contracted childcare (contract with nursery direct with MyCo and pay them directly) instead of faffing with vouchers, much easier but guess not an option with an umbrella. The maximum you can get is determined by your total salary.

October I believe it started.

[psychocandy]

The £28 is the weekly exempt limit because you're a higher rate tax payer. Under the new tax free scheme you could get up to £500 per quarter and the gov will chip in £2 for every £8 paid to the childcare provider via an online account if you qualify.

Always wondered why they told me £28.....

So new scheme I chuck in £500 a quarter, gov chuck in £125. Total £625.

Obviously, less than this at £28 a week. Thing is my daughter is in school full time so this is just needed for holiday clubs etc. so £28/week is plenty. Tax savings this way are way more.

Of course theres alway the risk of being left with £100s of childcare vouchers and no way to spend them.