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About: Childcare voucher scheme     Goto   Sponge   NotDistinct   Permalink

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The Childcare Voucher Scheme was a UK government initiative aimed at helping working parents to benefit from tax efficiencies in order to save money on childcare. However, as of 4 October 2018, schemes are closed to new members as the system was phased out in favour of the tax-free childcare scheme. The scheme was offered as a salary sacrifice scheme, which means that UK parents who are in the scheme can sacrifice part of their salary to obtain childcare vouchers (of an equal amount). In doing this the parents do not pay any tax or national insurance on the amount contributed to the childcare vouchers scheme up to specified limits. Due to this tax efficiency, the childcare voucher scheme has limits in place, after which you would pay for childcare in the usual taxable fashion.