Childcare Vouchers closed to new entrants from 4th October 2018
by Alexander Beard, on Jul 31, 2018 9:27:54 AM
The government have confirmed the closure of Childcare Vouchers to new entrants from 4th October 2018 in The Income Tax (Limited Exemptions for Qualifying Childcare Vouchers and other Childcare) (Relevant Day) Regulations 2018 and is being replaced with a new ‘Tax-free Childcare’ scheme.
Existing scheme members
To be recognised as an existing scheme member, vouchers must be credited into the account prior to the 4th October 2018. Depending on the employers’ payroll cycle, this may mean that the September payroll is the last payroll in which new members can receive Childcare Vouchers, speak to your employer to find out the exact deadline for receiving September vouchers.
As an existing scheme member parents can continue to enjoy the savings gained via Childcare Vouchers for as long as they remain with their employer, and their employer continues to offer the scheme. If a parent’s employment changes under TUPE, they are entitled to join the scheme of their new employer. However, if a parent changes employment through their own choice, they will no longer be classed as an ‘existing scheme member’ and under the new rules will not be allowed to join their new employer’s scheme.
The current 52-week rule can still apply to existing scheme members, this allows a break in the voucher order for up to 52 weeks. However, if the parent does not re-order vouchers before the 52-week deadline, they will no longer be classed as an existing scheme member and eligible to remain in the Childcare Voucher scheme.
Actions for employers
As an employer, now is the time to promote your Childcare Voucher scheme to your employees. If you are willing to extend your September payroll deadline for late entrants into the Childcare Voucher scheme, let us know. If you do not currently have a Childcare Voucher scheme, you can find more information here. Setting up a scheme is a simple process that can be done online.
Actions for parents
If you are not currently a member of the Childcare Voucher scheme, you can sign up online using your employer’s scheme reference number. If your employer does not currently have a scheme, they still have time to set one up. Ask them to go online or call us for more information. It is worth checking whether you would be better off with Childcare Vouchers, or the new Tax-free Childcare (depending upon your eligibility). You can follow the link below to see which is best in your circumstances.
Client Services Manager (AB International Benefits B.V.)