102: Workplace childcare schemes

The Government has confirmed that, due to problems with the transition to the new tax-free childcare scheme, the closure date for the workplace childcare voucher scheme will be delayed to 4 October 2018. From this date, existing employer-supported childcare schemes will close to new entrants, and existing employees must have sacrificed salary and received childcare vouchers in order to be treated as an eligible employee. Eligible employees can continue to sacrifice salary, on which no income tax or National Insurance contributions are payable, and receive tax-exempt vouchers, provided that they remain with the same employer, the employer continues to run the scheme, and the employee does not take a break from receiving vouchers for a year or more. The new tax-free childcare scheme, introduced from April 2017, provides parents with children under the age of 12 up to £2,000 per year to help cover childcare costs and does not involve any form of salary sacrifice.