Every working parent at some point may struggle with the pressure of summer holidays and childcare arrangements. Let’s be honest, it can get pretty expensive, but luckily there are many schemes you and your employee may be able to benefit from.
Did you know that you can get up to £500 every 3 months (£2,000 a year) for each of your children to help with the costs of childcare? If you get Tax-Free Childcare, the government will pay £2 for every £8 you pay your childcare provider via an online account. You can use it to pay for approved childcare, this includes:
+ registered childminder, playscheme, nursery or club
+ childminder with an Ofsted-registered childminding agency
+ registered school (after school clubs/breakfast clubs)
+ home careworker working for a registered home care agency
If your child is at nursery and entitled to 30 hours free childcare, you can get Tax-Free Childcare at the same time if you’re eligible for both.
What can you do as an employer?
Many employers are choosing to ease the pressure of the cost and offer their employees Childcare Vouchers. It boosts staff morale, helps them to save money and it’s also a serving for your business.
Childcare vouchers are deducted from your employee’s wages which reduces their income and therefore also tax deductions and potentially NI contributions. Your business doesn’t pay NI on the value of Childcare Vouchers, which could save you a few hundred pounds per employee, per year too. If this is something you’d like to consider, you have until 4 October 2018, the scheme will be closed for new entrants after this date. It’s also important to remember that your employees cannot benefit from the Tax-free Childcare and Childcare Vouchers at the same time.
More information on both can be found on: https://www.gov.uk/
Feel free to contact us to find out more:
Office Telephone: 01752 895648
Office Address: 15 Erme Court, Leonards Road, Ivybridge, PL21 0SZ