Childcare voucher (CCV) schemes are an initiative launched several decades ago to assist families with low incomes in ensuring their children still benefit from quality childcare. These schemes are run by companies; ask your employer if they currently run a childcare voucher scheme.

Up to £55 a week of your salary can be paid in childcare vouchers, which do not appear on your payslip – this means you do not need to pay as much tax and National Insurance contributions, since your salary is nominally lower. Exact amounts will differ according to individual incomes and circumstances.

Many people are eligible to take part in these schemes, but are unaware of this! A common misconceptions is that these vouchers can only be used for nursery costs, but this is false – it applies to all approved childcare, such as tuition with The Local Teachers. To find out if you are qualified, contact your HR department irrespective of your company size – this is a programme which all employers can register for. It doesn’t hurt to investigate a  little, even if you are unsure.

As of 4th October 2018, this scheme has closed. It is no longer possible to apply, and current claimants can only continue claiming if:

1. Their wages have been adjusted on or before 4th October 2018
2. Their employer is unchanged and they continue to run the scheme
3. They do not take an unpaid career break of over a year.

You may be eligible for extra tax credits to pay for your children’s childcare costs while working; however, the amount of extra tax credits you may be eligible for depends on your household income and circumstances.

Eligibility

You may be eligible for the tax credits if:

• You are a single parent and work for over 16 hours weekly or in a situation where both parents work for a combined total of over 30 hours per week
• The childcare provider you enrol with is approved or registered (such as The Local Teachers).

The best way to know if you are eligible for childcare working tax credits is either by visiting www.gov.uk/childcare-costs-for-tax-credits or calling the HMRC helpdesk on 0345 300 3900.

The HMRC telephone attendants should be familiar with The Local Teachers, but, when mentioning us, you should clarify that The Local Teachers is a registered childcare provider.

Tax-Free Childcare was introduced by the government to support working families with the costs of their approved childcare fees, such as our classes at The Local Teachers Education Centre. Qualifying families will have access to open an online account to make payments for their childcare fees. The government will pay up to £2 for every £8 you pay, up to a maximum of £500 for every 3 months (£2000 per year). Extra support is available for disabled children.

Eligibility

Your family could be eligible if:

• You have children below the age of 12
• You are a single and working parent or where both parents are working and each earning above £125.28 weekly, but not more £100,000 per year
• Your child must usually live with you.

Other conditions exist, which can be found – among other information – on the Government’s website.

The Childcare Grant option is available for full-time students who have dependent children, and covers up to 85% of childcare fees during the year.

This grant is available for qualified full-time students who are eligible for the student finance package, and can also be used with The Local Teachers. If you are a part-time student or receive Working Tax Credit, then you would not be eligible for this grant.

To learn more and apply for a childcare grant, please visit: www.gov.uk/childcare-grant.

If you participate in any salary sacrifice program, you can donate part of your salary in return for a non-cash assistance, which may be used for childcare and also gives you the chance to save on tax and National Insurance.

Anybody who works, or owns a limited company, is eligible to participate in the salary sacrifice program, so far the company does not provide childcare vouchers through a third-party provider.

Contact your external account for advice. Once you have a put an agreement into writing, the fees will be deducted from your salary before tax and National Insurance are deducted. The Local Teachers will set up a Direct Debit to collect the membership fees on the 1st of each month.

To find out more about this, please visit: https://www.gov.uk/guidance/salary-sacrifice-and-the-effects-on-paye

The Government also offer substantial assistance to cover childcare costs for families who claim Universal Credit – up to 85% of tuition fees with The Local Teachers can be covered by them, as we are a registered childcare provider.

Eligibility

Parents and guardians must fulfil one of the following criteria:

• The parent/guardian (or both, if part of a couple) must be in work (there is no minimum to the amount of hours worked)
• The parent/guardian (or both, if part of a couple) must have a job offer.

Moreover, they must be paying for approved childcare, of which any of our services qualify as such.

Exceptions

Some exceptions apply for parents/guardians for whom these conditions do not describe their full circumstances. These exceptions are detailed below.

If the partner of the claimant is not in work, parents/guardians may still be able to claim back part of their childcare costs if they meet certain requirements:

• If the partner has Limited Capability for Work (an exact definition can be found here);
• If the partner is substantially responsible for caring for a severely disabled person; or
• If the partner is temporarily absent from the household.

Furthermore, parents/guardians who are out of work could still be eligible, if they meet the following conditions:

• If the parent/guardian stopped working in the same period as their Universal Credit is assessed
• If they are in receipt of one of the following:
  • Statutory sick pay;
  • Statutory maternity pay;
  • Statutory paternity pay;
  • Statutory adoption pay;
  • Statutory shared parental pay; or
  • Maternity allowance.

More information can be found here.