About childcare vouchers

Childcare vouchers are a cost-saving employee benefit available to working parents. Childcare vouchers operate as a salary sacrifice scheme – your contributions are taken from your salary before your usual tax and National Insurance contributions are deducted.

 

You can use childcare vouchers to cover the cost of care for children up to the age of 15 and even to pay for registered childcare including before and after school clubs, certain elements of independent school fees and holiday camps.

 

The exact amount you can save depends on your rate of tax, the amount of NI you pay and the total value of vouchers you redeem every year. The figures below are for indicative purposes – for more information, speak to your employer or a childcare voucher provider.

 

During the roll-out of the government’s Tax-free Childcare scheme, childcare vouchers will remain open to new entrants until April 2018. Existing users will be able to continue claiming vouchers. Depending on your family’s circumstances, you may be better off under childcare vouchers rather than Tax-free Childcare. Find out more here.

 

Tax band

Maximum voucher allowance

Maximum savings per annum

Weekly

Monthly

Yearly

Basic Rate

£55

£243

£2,915

£933

Higher Rate

£28

£124

£1,484

£623

Additional Rate

£25

£110

£1,325

£622