In March 2016, the Government confirmed their plans for a Tax-Free Childcare scheme (TFC) to be rolled out gradually from early 2017. Tax-Free Childcare will provide working parents and now self-employed workers with another option for tax savings on their childcare direct through the Government.
Until 2017, however, employer Childcare Voucher schemes remain the best way for working parents to reduce the rising cost of childcare. Many parents will not be able to claim under the new Government scheme so should join an employer scheme before it’s too late as the Childcare Vouchers scheme will be closed to new entrants from April 2018. Parents can remain on the Childcare Vouchers scheme beyond 2018 and for as long as they require as long as they stay with their employer.
If you are unsure about which scheme may be more beneficial for you, you can use the childcare calculator on the .gov website.