The launch of the UK Government’s ‘Tax-Free Childcare’ scheme is imminent and this could change the way you pay for your family’s childcare.
From 28 April, tax-free childcare will be rolled out to parents and carers across the UK who meet qualifying criteria.
The Childcare Choices website explains:
“If you're a working parent with children under 12 (or under 17 for disabled children), you can open an online account to pay for registered childcare. The government will top-up the money you pay into the account. For every £8 you pay in, the government will add an extra £2. You can receive up to £2,000 per child, or £4,000 if disabled.
“You, and any partner, must each expect to earn (on average) at least £120 per week (equal to 16 hours at the National Minimum or Living Wage). If you, or your partner, are on maternity, paternity or adoption leave, or you're unable to work because you are disabled or have caring responsibilities, you could still be eligible.”
You can read more about tax-free childcare, and other options, on the Childcare Choices website.
As an employee of Moray Council you’re entitled to a range of benefits – one of which is childcare vouchers as a salary sacrifice agreement.
This allows you to take a portion of your salary (tax and NI free) and convert into online vouchers to full or part payment to registered childcare providers.
If you’ve already signed up for childcare vouchers, you can continue to receive them but it’s expected that childcare voucher schemes will close to new joiners in 2018.
IMPORTANT: You won’t be able to use your childcare vouchers and sign up for tax-free childcare. You’ll have to select which one suits your family needs best.