Our Partners - Early Years Childcare Vouchers

Early Years Chilcare Vouchers Logo We all know the value of great childcare for our children - providing the best childcare possible for your child is the utmost priority, but this does mean to say it comes cheap. Although, there is a way to reduce the cost of childcare through the use of childcare vouchers.

The UK Government childcare voucher scheme is easy to use, flexible and saves working parents money on childcare. Childcare costs are reduced by using childcare vouchers by reducing the amount of income tax and national insurance that a parent pays through a salary sacrifice scheme. This may not sound like a great deal but it really is.

The childcare voucher salary sacrifice scheme works by employers providing childcare vouchers from Early Years Vouchers Ltd to parents that can then be used to pay for child care such as nursery fees, play school, day care or some other form of registered child care. The carer then redeems these with Early Years Vouchers. There is no extra cost involved for the carer. The employer deducts the value of the vouchers from the parents' gross pay before tax is applied, hence the financial saving.

Working Parents Reduce Childcare Costs

The childcare savings are clear to see. For the 2008/9 tax year the tax free childcare voucher scheme allowance is £55 per week (£243 per month). The savings on working parents' tax are quite substantial, up to £903.96 per annum for a 20% tax payer and £1195.56 for a 40% tax payer.

Employers Benefit from Childcare Vouchers

By offering childcare vouchers as a flexible benefit for employees , significant rewards are borne for the employer too. Flexible benefits are proven to help recruit and retain staff, and what better way to offer this benefit to employees than through this cost-neutral scheme. Costs towards a childcare voucher scheme are more than displaced by savings made on employer national insurance contributions.

The flexible benefits of childcare vouchers may be especially important for working parents returning to work after having a child, or those simply wanting help with reducing childcare costs through this Government scheme.

More information, advice on the benefits of a childcare voucher scheme are available for parents child care providers and employers.

How can childcare vouchers be used?

Childcare vouchers can be used for any registered or approved childcare for children aged between 0 - 16 years (terms apply). The childcare vouchers scheme can be used to pay for nannies, au pairs, play school, nurseries, childminders, play group, day nursery, school holiday clubs, after school clubs and any other sort of registered childcare provider. Childcare providers can get in touch to quickly and easily register to accept vouchers from parents.

Managing a Childcare Voucher Scheme

The Early Years childcare voucher scheme is managed online, using an easy to use system available on the childcare voucher website . Here, you can find a wide variety of downloadable resources to help with setting-up a childcare voucher scheme, along with understanding Government legislation and the implications of childcare vouchers on tax . Childcare needn't be a burden.

Early Years Vouchers...making childcare affordable.