Yesterday it was confirmed that Tax-Free Childcare is set to be rolled out from April 2017. The scheme will initially roll out to families with younger children, and open to all by the end of 2017.
It was also confirmed that Childcare Vouchers will remain open to new entrants until April 2018, giving parents 12 months to enjoy tax and National Insurance savings through salary sacrifice. Beyond April 2018, members of the Childcare Voucher scheme can continue to enjoy savings, whilst new parents will only be offered Tax-Free Childcare.
Based on our research we have found over 60% of families will be better off continuing to use Childcare Vouchers. Our online calculator will help you find the best scheme for you. It is worth noting that the Government are ‘bundling’ the sign up for Tax-Free Childcare with the application for 30 hours free childcare, however it is possible to continue to use Childcare Vouchers as well as benefitting from 30 hours free childcare.