I have access to the scheme and was wondering if I should start applying for vouchers now. I will only need to use them in about 5 months’ time. Is there anything I need to know about them before applying? Like expiration dates, how much can I apply for using salary sacrifice et?

I’ve heard of some childcare providers deeming the vouchers as less value than a cash payment of the same amount. Is this true?

Unless you really need to save for it, you don’t need to start now. Be careful you don’t put too much in either, as they generally don’t do refunds.

I’m pretty sure childcare providers don’t/aren’t allowed to do that, they get the full money.

£243 a month is the max you can claim.

Don’t think there’s an expiration on them, i’ve got just shy of 3 grand stashed away ready for when the the nipper goes to nursery.

at £56 a day for the nursery the more tax relief you can get on childcare the better!

I’d get your claim in ASAP (assuming you don’t need the money in the mean time)

Tax avoiders..! 😉

But as scaled says – earlier the better as you soon burn though your balance of they go to nursery!

Don’t need the money yet! I think there is a limit on how much I can get through work, but I’ll have to check on that.

£243 a month is the max you can claim.

Depends on the tax rate you pay, about £112 max if you pay 40% tax, zero if earning >£150K

Some voucher providers have expiry dates, others don’t.

That said aren’t the government about to launch a new scheme?

Worth bearing in mind it’s changing soon, so you may be better to start early before TFC:
http://www.giveyourselfachoice.com/

When you should apply depends on how much you need to spend on Childcare.

We spend about £600 a month now, we both have access to a sceme so use our full allowance – £243 a month each, after reduced NI and PAYE is considered it costs us about £168 a month so saves us £75 a month each. If you’re going to be spending more than £500 a month on childcare it might make sense to start stock piling a month or two before.

Whilst they say “voucher” there are no phisical vouchers on either of our scemes. My Wife’s is an online account and she just transfers the money as/when she needs to – it arrvies in her account on Payday. Mine is a bit more low-tech as I’m the only person in the company who uses it so my Boss just transfers the money for me.

I haven’t heard about any childminders devaluing them, Ours complain sometimes that whislt the bills are due on the 1st of the month, mine doesn’t come through till the 5-7th of the month, but my Wife gets paid on the 21st so her are early, mine are late and the over-spend we pay on the 1st so it’s complex but they don’t mind – they’re well used to it.

First an foremost we chose our Childminder on references and an interview, but if they started to mess about with that sort of thing I would put me off – you’re starting a relationship that’s probably going to last 3 years and you’re trusting them with your kids!

dooosuk – Member

Worth bearing in mind it’s changing soon, so you may be better to start early before TFC:
http://www.giveyourselfachoice.com/

Good post, I had no idea about TFC, it looks pretty crap frankly.

On the face of it, it would cost me £408 a year more, and we don’t qualify for Tax Credits so the change would be limited.

I guess if you’ve got a couple of kids in Childcare or it’s just expensive where, you don’t qualify for Tax Credits or you’re a higher rate tax payer it might be beneficial – very Tory plan I guess.

Its definitely worth checking if the provider puts an expiry date on the vouchers. My workplace changed provider and now I’m only allowed 18 months before vouchers expire. The previous supplier and my wife’s supplier last until child is 18. Bear in mind vouchers can be used way past pre school and can be used for before/after school clubs and also holiday clubs.

Bear in mind vouchers can be used way past pre school and can be used for before/after school clubs and also holiday clubs.

Yep – we use them to pay for wrap-around childcare for our eldest.

Also worth remembering that when your child turns 3 your childcare costs may go down as they then get 570 hours a year of “free” education (usually 3 hours a day).

Now my son is at school I don’t need so much – just after school club – but I have to build up the vouchers to pay for holiday periods so consider that.

The amount you can allocate depends on when you sign up. My wife can use £243/month but as I joined scheme later I am limited to £124/month.

Ignore my previous post – depends on tax rate as well!

Sorry

Worth bearing in mind it’s changing soon, so you may be better to start early before TFC:
http://www.giveyourselfachoice.com/

Thanks for that – I knew something was changing, but that explains it properly.
Thankfully I already buy £243 per month of childcare vouchers so I should be OK providing I don’t change jobs.

The amount you can allocate depends on when you sign up. My wife can use £243/month but as I joined scheme later I am limited to £124/month.

We’ve just been shafted by this – my wife changed jobs at Christmas and went from buying £243 per month to a limit of £124.

there is no expiration date as far as i can see. i use the kiddivouchers scheme.
if you can afford to start paying in now then its not a bad thing as it just builds up your voucher balance.
i started paying in when my daughter gonzy2 was at nursery. then the wife got pregnant with gonzy3. when he was born gonzy2 stopped going to nursery and stayed at home with mum and gonzy3. wife took an extended break on top of her maternity leave so in total she had 15 months off. when she returned to work gonzy2 was at a primary school nursery so no fees but gonzy3 was at nursery. the vouchers i had saved in that time helped pay for the first 4 months of his nursery fees.