Childcare vouchers are becoming increasingly popular. Below are links to some of the voucher providers sites and some general information about the vouchers themselves.
How many vouchers can you buy?
Basic rate tax payers (and higher/ top rate payers who joined before 5th April 2011) can pay for up to £243 of childcare with vouchers each month (£55/week). This is PER PARENT so two working parents could get £486 a month of vouchers.
From 6th April 2011 new joiners paying higher or top rate tax had their allowance dropped so that all tax payers have roughly the same maximum tax gain. The new limits are:
- Basic (20%) Taxpayer, £55/week vouchers, max annual gain £920
- Higher (40%) Taxpayer. £28/week voucher, max annual gain £610
- Top (50%) Taxpayer. £22/week voucher, max annual gain £590
The number of children you have doesn’t impact this, the limits are the same whether you’ve one child or an entire Brady Bunch.
Vouchers aren’t specific to each child and have a long expiry date, so if you know you’re going to have higher childcare costs in the near future get the maximum allowance now.