‘Tax-free childcare’ will replace the Childcare Voucher Scheme, which is being phased out. Parliament voted to extend the deadline for joining the Childcare Vouchers Scheme until the 4th October 2018. After that, parents who are not already signed up for childcare vouchers would not be able to get them.
The Tax-Free Childcare (Tax-Free Childcare) will give eligible parents an extra 20% towards childcare costs, up to a max of £2,000 per child per year. This equates to the Government contributing £2 for every £8 the individuals pay into an online Childcare account. It will put in a maximum of £500 every three months for each child (£2,000pa) – or £1,000 (£4,000pa), if the child is disabled.
Unlike the current childcare voucher scheme, which involves a person’s employer, the new system will allow individuals to pay their childcare costs directly into an HMRC account – and the Government will ‘top-up’ the account with their contribution. The money will then be paid directly from this one account to the school. To find out if you qualify for tax-free childcare please use the calculator at https://www.gov.uk/childcare-calculator.
If you are an existing member you can continue in the employer scheme until either the employer closes the scheme, your child does not qualify or you leave their employment. For some, however, they may find that the new arrangement is better in which case they should consider coming out of their existing employer provided voucher scheme.
Those who win with Tax-Free Childcare:
- Parents with more than one child and high childcare costs, as the help available goes up with the number of children. There is a limit for childcare vouchers which is not dependent on the number of children.
Those who win with Childcare Vouchers:
- Couples where one parent does not work as they are not eligible for Tax-Free Childcare, but the employed parent is eligible for vouchers (provided their employer offers a scheme).
- Basic-rate taxpayer parents with total childcare costs of £9,336 or less. Under this amount the saving you make with Childcare Vouchers exceeds the saving you can make with Tax-Free Childcare.
- Higher-rate taxpayer parents with total childcare costs of £6,252 or less. Under this amount the saving you make with Childcare Vouchers exceeds the saving you can make with Tax-Free Childcare.
- Anyone earning £100,000+ is not eligible for the scheme, whereas they can get Childcare Vouchers.
15/30 Hours Free Childcare
All three and four-year-olds in England are already eligible for 15 hours a week, or 570 hours a year of free early education. Parents of three and four-year-olds may be entitled to 30 hours free childcare. However, historically the school has failed to meet Lambeth’s eligibility criteria as a provider because we are selective and uniform wearing.
Applying the Child Care Vouchers or Tax Free Childcare.
The school can only accept CCVs or Tax Free Childcare payments for ‘Child Care’ not education. In terms of private education only applies to children under 5 (end of first term following their 5th birthday). For older children, Childcare Vouchers can be used to pay for any activities or clubs that take place on school premises outside of school hours (breakfast clubs, afterschool clubs including activities, homework clubs and boarding, and holiday clubs)
Rosemead can only apply Vouchers/Tax Free payments to the costs associated with the above criteria. Should the monies received exceed the value of expenditure, this may be carried forward but cannot be refunded to the parent. For Vouchers to be applied, the school must receive the payments into our bank at least 7 days before the next payments are collected.
For further information see