Childcare Vouchers

 

SAVINGS OF UP TO £2,000 per year

From April 2005 huge savings can be made against childcare costs by paying for your childcare in vouchers which are provided by your employer.

Using vouchers up to the value of £55.00 per week parents can save on tax and NI contributions.

As an example

If you are a standard rate tax payer you will save £916.00 per year if you elect to use childcare vouchers. If you are a higher rate tax payer you will save £1,195.00 per year.

These savings can be per parent and hence two parents paying for our services by childcare vouchers can save up o £2,390.00 per year in childcare costs!

To make this saving your employer needs to be pay part of your salary to you by way of childcare-vouchers which are redeemable against the cost of the childcare that you normally have to pay for. This is known as a “salary sacrifice” and the terms of your employer’s scheme must be approved by the Inland Revenue.

Sounds complicated? Not at Treetops!

We work in partnership with Accor Services UK who are the leading, and largest provider, of childcare vouchers in the UK.

Put quite simply once your employer has agreed that you may take part of your salary in this way we will co-ordinate all of the necessary work, direct with your employer to ensure that you can take full advantage of these huge savings.

The added benefit is that this can apply to any size of employer – in fact if you are running your own business you can still gain from this benefit.

The final benefit is that, once we introduce Accor to your employer, your employer will also save money on the National Insurance contributions that they would otherwise have paid on your salary and hence all should be very happy.

Help With Fees

 

Free places for three and four year olds

All three and four year olds are entitled to part time, Early Years funded sessions through the Nursery Education Grant. Nursery Education Grants are provided subject to the criteria set by your local Authority and the funding available in your area but generally start the term after your child’s 3rd birthday. This will mean a reduction in your invoice or free Kindergarten sessions (term time only 2 & ½ hour sessions). Please speak to your nursery manager for more details. Further information can be obtained by contacting your local Children’s Information Service on 0800 096 0296.

Help from employers

Employers may offer help with childcare by using childcare vouchers, which can give a huge saving on your tax and National Insurance contributions. Talk to your employer about the support that is available. If the company does not offer help with childcare currently, you should ask them if they would provide the vouchers through a very simple to administer system run by the company Accor.

Child Tax Credit

The Child Tax Credit is available to families who have an income of up to £58,000 per year. 9 out of 10 families are eligible for this tax credit and it is paid in addition to Child Benefit. There is also a higher payment available for families with at least one child under one year old (the baby element) and for families with children that have a disability.

Working Tax Credit

The Working Tax Credit provides extra help to those parents in lower paid work with dependent children if they work at least 16 hours a week. The childcare element of the Working Tax Credit can pay up to 70% of the cost of registered childcare up to a maximum of £135 per week for 1 child and £200 for 2 or more. For any enquiries regarding tax credits, please contact the tax credit help line on 0845 300 3900.

Useful links

 

Employer Links: www.employer-links.org.uk

A national scheme for employers who are committed to the development of work life balance policies for all.

Child Tax Credit and Working Tax Credit: www.taxcredits.inlandrevenue.gov.uk

A link to the Inland Revenue’s site which explains Tax Credits and has a calculator which will help you work out how much you could be entitled to. This allows you to apply online.

Remember that Treetops Nurseries accept all forms of childcare vouchers and allowances from employers, colleges and job centres.