CHILDCARE VOUCHERS January 2012


Whilst we understand that in theory both parents are entitled to benefit from tax and National Insurance savings by using child care vouchers, in practice, for a variety of reasons, in some cases only one parent or neither parent has the opportunity to take advantage of this scheme, resulting in some parents paying less and some more for the same amount of childcare.

In an effort to be as fair as possible to all parents, we are therefore willing to accept childcare vouchers on a 1:2 basis, i.e.

One CCV payment (£55) per child per 2 days childcare
One and a half CCV payments (£82.50) per child per 3 days childcare
Two CCV payments (£110 per week) per child for 4 days childcare

with a limit set of £55 per parent per week as that is the maximum amount for which each parent can benefit.

This is payable as follows:-

* the agreed CCV payments are to be made monthly in advance either
4 weekly or monthly which will be allocated to specific weeks
* the balance of fees for each week are to be paid in cash weekly
in advance

We make no charge for the administration of childcare vouchers even though it does add to our workload as we do want to enable parents to benefit. There are additional benefits to parents in the form of discounts in shops, on outings and holidays. There are no benefits for childcarers apart from attracting working parents who are eligible to use a childcare voucher scheme.

If parents are receiving the childcare element of working tax credits, which provides specific support related to childcare costs, this will in most cases be affected by using childcare vouchers. To check if you would be better off with tax credits or childcare vouchers, you can use the online calculator at www.hmrc.gov.uk/calcs/ccin.htm

Do check the changes to legislation 6 April 2011.

You can find out more information online about salary sacrifice and childcare vouchers by looking at childcare voucher company websites.

Using childcare vouchers and paying less tax and National Insurance may have implications on your pension.

Parents who are unemployed, self-employed or whose earnings would fall below the National Minimum Wage if they exchanged part of it for childcare vouchers are not eligible to join a childcare voucher scheme.

We currently have accounts with:- Edenred, Sodexho Pass, Kidsunlimited, Computershare, Teds, Childcare Voucher Solutions, Allsave, PES, Fair Care, Care-4



Wendy & Louis Bernardelle
The Wendy House N12