Tax relief for childcare vouchers

Tax Question

Has the tax relief for childcare vouchers ceased?

Tax Answer

From 6 April 2018, childcare voucher schemes will close to new applicants. You may be able to get Tax-Free Childcare instead.

You can keep getting vouchers if you’ve joined a scheme and get your first voucher by 5 April 2018, as long as:

  • you stay with the same employer and they continue to run the scheme
  • you don’t take an unpaid career break of longer than a year

If you get Tax-Free Childcare

You can’t continue to claim childcare vouchers if you successfully apply for Tax-Free Childcare.

Which scheme you’re better off with depends on your situation. Use the childcare calculator to work out which type of support is best for you.

You must tell your employer within 90 days if you get Tax-Free Childcare. They’ll then stop giving you new vouchers.

You can continue to use any vouchers you already have, including to make a joint payment for childcare with Tax-Free Childcare. There’s no deadline for using your vouchers.

Once you’ve told your employer that you’re getting Tax-Free Childcare, you can’t rejoin their voucher scheme.

Linda Eales – Vantage Fee Protect Tax Consultant

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