Time to re-assess your childcare benefits – Childcare voucher contributions & Tax-Free Childcare
Since the start of the pandemic you may have found yourself working from home more. Couple that with nurseries and after and before clubs closing and you may have had less need for paid childcare.
But rather on saving costs, have you still been paying for the same amount of childcare vouchers? If you’re contributions are automatically transferred from your salary, you might have more than a few unspent vouchers on your hands.
To save these from piling up, speak to your employer about reducing your contributions. With your employer’s consent you can agree to a new lower amount that takes account of your current circumstances.
And don’t worry, if you did want to increase your contributions again in the future, you will be free to do so (provided that the normal conditions of the scheme are met).
If you are an employee that receives childcare vouchers via salary sacrifice, you may want to check whether you are better off financially on Tax-Free Childcare (TFC).
Tax-Free Childcare (TFC) supports eligible working parents with the costs of childcare across the UK. For every £8 paid into a childcare account, the government contributes an extra £2, up to £2,000 per child (under 12 years old) per year, and £4,000 for children (under 17 years old) who are disabled. You may be one of the families that are better off on TFC.
Click here for more information on the scheme.
Speak to your employer regarding any adjustments you may wish to make.
And if you are an employer, remind your employees of their opportunities surrounding childcare benefits.