Skip to main content

Tax-Free Childcare, and the upcoming changes to Childcare Vouchers


If you're a working parent who pays for childcare, you're probably familiar with Childcare Vouchers. The government scheme was first introduced in 1989, and allows employers to offer their employees up to £55 a week of their wages as Childcare Vouchers - which you're not required to pay tax or National Insurance on. The scheme is invaluable to working parents, but as of October 4th, the system is changing. 

The government introduced Tax-Free Childcare in April 2017. The scheme will eventually replace the Childcare Vouchers that employers currently offer. The scheme will operate in a similar way - working parents may be eligible for up to £500 every 3 months for each child. You will have to use the money to pay for childcare through one of the government's approved providers. This will not affect the 30 hours of free childcare you may be eligible for.
 
For those already registered to the Childcare Voucher scheme, if you have received your vouchers at least once, you will continue to receive the vouchers - as long as your employer continues to run the scheme and you do not take an unpaid career break of longer than a year.

However, whilst some families and working parents will naturally benefit from the move to Tax-free Childcare, others are set to lose money under the new scheme. Fortunately, as there's still a few months to go, before Childcare Vouchers are closed to new entrants, there's time to figure out which scheme you'll benefit most from.

If you're self-employed, or a couple who earn less than £100,000 each, you will be eligible for Tax-Free Childcare - Childcare Vouchers were not available for self-employed people. If you're a parent with only one child, and childcare costs are particularly high for you then you may find that Tax-Free Childcare leaves you with more pennies than Childcare Vouchers.

However, if you do not fall into either of those categories, you're likely to find that Childcare Vouchers offer far more financial benefits. Find out exactly what you could gain or lose here. You can sign up to Childcare Vouchers through your employer at any time, and you'll continue to receive the vouchers after October 4th. Employers can also sign up to this scheme before the cut off date.

For those not signed up to either scheme, you are eligible for Tax-free Childcare or Childcare Vouchers (until October 4th) for every child you have under the age of 11, or under 17 and disabled.

The amount you are entitled to depends on the tax bracket that you fall into, as well as the amount your family already receives in benefits, your working hours and your salary. If you want to estimate how much you could be entitled to, you can complete a 5 minute survey on the government website.

Tweet us @TranscenditUK


The Transcendit Way

Transcendit understand that when you choose to work with us, whether we're taking care of your IT, app or web development, you're trusting us with part of your business. So whether we're looking after your computers, phone systems or servers we always do things 'the Transcendit way'.

The whole of our team adhere to the same values, beliefs and policies - the principles that were written when Transcendit first formed in 2000. Whether you come to us for a refurbished computer, cloud services or recovery backup you can be confident that you'll always receive the same excellent service.

The Transcendit way outlines how we do business; following the same straightforward principles with every client and customer, regardless of how big or small they may be.

That means we get to know you and your business. We offer you a friendly, professional and efficient service, and we'll always be honest with you.
We understand that not everybody speaks fluent IT, so we try to explain things in a way that is simple and clear. We always spend as much time as is necessary explaining things to you.
If you need to talk to us about something, no matter how insignificant, we are only ever a phone call away – and we’re never too busy to make you a cup of tea and have a sit down with you in person.
We understand how frustrating it can be when things are late. When we schedule an appointment with you, we are there when you’re expecting us. If something prevents us from getting there, we always call you in advance to let you know.
Sometimes things can go wrong, but we never lie to you or try to cover something up. If things go askew we tell you what’s happened and how we plan to prevent it affecting your business.
We want you to continuously benefit from working with us. We regularly discuss your business and make suggestions for improving systems and processes wherever we can – but we never try to push you into a purchase.
When we quote a fixed price, that's always the amount we charge – you won’t find any nasty surprises on a bill from us. If you are paying by time and materials, we inform you if our approximations could change.
We understand the importance of privacy for your business and your customers. We respect the confidentiality of your data, and we will never pass on your information to third parties.
We appreciate it when you take the time to give us feedback. A system called CustomerSure records our client's responses, so you can trust that our reviews are from real people.
Find out what they're saying here.
Paul is always more than helpful...we'd be lost without him! Angela Fenwick, Streetwise

Based on 7296 reviews our customers rate us 9.8/10. Reviews and ratings by Customersure. 30-November-2018

Transcendit are proud sponsors of CHUF, the Children's Heart Unit Fund.