Changes to childcare tax allowances

Childcare voucher tax incentive will be reduced from April 2011

The Government are planning to reduce the level of tax relief on Childcare Vouchers for higher and additional rate tax-payers who sign up after 6 April 2011.  If you are not already in a scheme, join up now to secure tax releif at the current level.

The tax changes means some working parents could lose up to 50% of the tax and NI savings that are presently available to them today and could potentially miss out on up to £1196 in tax and NI relief if they sign up to a voucher scheme after April 2011. If you sign up before April 2011 you will continue to save on your childcare costs at the current levels.

For parents earning between £42,376 and £150,000 pa, the current annual tax and NI saving potential is £1196, from April 2011 for new applicants it will be reduced the £624.

Basic rate tax-payers will not be affected and would still be able to save up to £900 a year.

Voucher providers have lots more information, take a look at our voucher providers links for the website of your company scheme.

If your company does not have a scheme, contact any provider and they will be happy to help you and your employer through the set up process.

Childcare Vouchers

Childcare Vouchers

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