Can you use childcare vouchers and tax credits
Your carer will then be paid automatically by Edenred each time you make a transfer. If they have not been paid with Edenred Childcare Vouchers before, they can affiliate online here.
Care provided by the governing body of a school is approved if it takes place:. This means that in terms of private education this would only apply to children under 5 end of first term following 5th birthday.
If the child is between 5 and 15 or 16 years old if they are disabled , all of the following must apply:. As your Childcare Vouchers are not tied to a particular carer, you simply need to ask your new carer for their Edenred account number, or ask them to affiliate with us if they have not accepted Edenred Childcare Vouchers before.
Once you have their Edenred account number you can arrange payment via your online account as you did with any previous carers. If you have a standing order set up to go to your old carer, you should delete it.
The date on which you receive vouchers is set by your employer each time they place an order for you, so you should contact them directly with any queries of this nature.
Whether you can receive a salary alternative to vouchers you have accrued will depend on the conditions of the scheme determined by your employer in the agreement you signed up to. Please consult those conditions and discuss them with your employer if necessary. However, as Childcare Vouchers can be used for out of school and holiday clubs for children up to the age of 15, you may well be able to get further use of any vouchers you have built up.
If you receive the childcare element of working tax credits, which provides specific support related to childcare costs, this will in most cases be affected, as the value of Childcare Vouchers you receive will reduce the value of the qualifying childcare costs you can claim in tax credits. This is something you should speak to your employer about. There is an expiry date printed on paper Childcare Vouchers, this is for internal auditing purposes only.
Parents can always use their vouchers beyond this date to pay for approved childcare and Edenred will always honour such vouchers. Electronic Childcare Vouchers do not expire; however, your employer may have additional conditions on usage if you leave their employment.
Joining a salary sacrifice scheme to receive Childcare Vouchers reduces your cash pay and the level of income tax and National Insurance Contributions NICs. As your entitlement to some statutory benefits is based on the amount you earn and your NICs, your current or future entitlement to contributions-based, earnings related or income-related benefits may be affected.
In most cases they are only useful if your income is too high to benefit from Tax Credits and Universal Credit. Childcare Vouchers are no longer available to new applicants, so this article is only relevant if you already get childcare vouchers and are considering whether to switch to tax-free childcare.
Tax-free Childcare is a government scheme introduced in There is also a government scheme called tax-free childcare which allows parents to open accounts for their childcare costs which the government will top up. If you have further questions and would like to contact our advice team please use our advice contact form below or call us.
Can I get Working Tax Credit? How much Working Tax Credit will I get? How do I claim Working Tax Credit? How do I challenge a Working Tax Credit decision? The Childcare Element of Working Tax Credit is for: Single people who work at least 16 hours a week; or Couples who both work at least 16 hours a week; or Couples where one works at least 16 hours a week and the other is getting Employment and Support Allowance ESA , Personal Independence Payment PIP , Disability Living Allowance DLA or Attendance Allowance ; or Couples where one works at least 16 hours a week and the other is entitled to Carer's Allowance ; or Couples where one works at least 16 hours a week and the other is in hospital or in prison serving a sentence or remanded in custody.
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