Nursery World - The Voucher way

Two types of financial support have been made available under the new childcare approval scheme: working tax credits and employer-supported childcare vouchers. Many nanny employers will not benefit from the working tax credit, as only households with a combined family income of 59,000 or less will qualify. However, it is expected that vouchers provided by employers will become a popular way for parents to make a substantial saving, as this form of tax relief is available to all parents, regardless of income. Many nannies have expressed concern about the potential hassle involved with being paid in childcare vouchers, so we have put together this step-by-step guide:

Many nannies have expressed concern about the potential hassle involved with being paid in childcare vouchers, so we have put together this step-by-step guide:

* Childcare vouchers are just a different way of paying you. Your salary will not change if your employer uses vouchers, nor will the amount of tax and NI they pay on your behalf. However, they will be able to save money on their own NI payments, in some cases as much as 2,000 per year.

Childcare vouchers can only be used to pay for childcare.

* To be able to use vouchers the parent needs to be employed, and their own employer needs to set up a childcare voucher scheme.

Register now to continue reading

Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:

What's included