Skip to Content

Childcare voucher scheme extension

Childcare voucher scheme extension
Friday, March 23, 2018

On 13th March 2018, the government announced a 6-month extension to the childcare voucher scheme, meaning you will now have until October 2018 to apply for the old voucher scheme.

 

This article looks at why the end of the scheme was delayed and what the replacement scheme looks like.

 

What is the childcare voucher scheme?

 

The voucher scheme allows parents of children up to 15 years of age to save money on their childcare. Vouchers can be spent in several places, including:

  • Nurseries,
  • Childminders,
  • Out of school clubs, and
  • After-school clubs

They can even be spent on hiring nannies.

 

How does the current system work?

 

Employers can (but not many do) offer childcare vouchers in the form of a “salary sacrifice”. As an example, £1,000 paid to a staff member in salary would only leave them £700 after income tax and national insurance contributions. However, by using salary sacrifice, your staff member receives £1,000 worth of childcare vouchers, leaving them £300 better off.

 

Basic rate taxpayers (those who earn up to £45,000) may request up to £243 a month in childcare vouchers. Higher rate taxpayers (those who earn up to £150,000) can request up to £124, and for additional rate taxpayers (those who earn over £150,000), it’s up to £110 a month.

 

If both parents sign up to the current scheme, it could save them up to £1,866 a year.

 

How will the new scheme work?

 

In March 2014, Chancellor George Osbourne announced that the scheme would be changing to a tax-free childcare scheme that was specifically designed to replace the voucher scheme.

 

This new scheme supports parents in a very different way. With this approach, your staff members’ childcare costs will be reduced by 20% (the same as the basic rate of income tax).

 

This means that for every 80p that an employee spends on childcare, the government will contribute 20p on top. The allowance is up to £10,000 a year per child. This means up to an additional £2,000 support from the government with childcare costs. That number rises to £4,000 if the child in question is disabled.

 

Why was it delayed?

 

During the Budget in 2017, Philip Hammond announced that the end of the voucher scheme would be April 2018 so that there was minimum overlap between the pre-existing arrangement and the new tax-free childcare scheme.

 

However, Labour MPs, along with the Democratic Unionists, called a vote on the new policy in parliament and, as a result, they successfully extended the end of the voucher scheme by six months.

 

The MPs’ reason for doing this was a concern over the lack of time that people had to adapt to the changes. Many MPs had received letters from worried families that they would be forced to pay childcare costs upfront in the future under the new system.

 

Panthera Accounting

 

Please call us on 01235 768 561 or email enquiries@pantheraaccounting.co.uk for help on all aspects of running your business.

 

WHAT OUR CLIENTS SAY

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

Pete Dungey | Kaleido Grafik Limited
Anita van Eijndhoven

Talk Our Language

The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

Anita van Eijndhoven | Quidne-IT
Ash & Tim Lane

Panthera brush aside the stereotype of the typical accountant

We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane | Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson | Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

John Baker | BKR Solutions
John Castle

Professional and Friendly

I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle | Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison | Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott | Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey | Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller | Bigger, Brighter, Bolder BBB

CONTACT US

Lets Get Started

Panthera will use the details that you have entered into this form to communicate with you on the subject of your message, and for no other purpose.
Please see our privacy policy for more details on how we manage your data.

Move to Panthera

Moving to Panthera is as easy as 1,2,3...

  1. We jump on a quick call to create the perfect service package for your business
  2. You e-sign your terms of engagement
  3. We get your authority to talk to HMRC on your behalf

And that’s it! From contacting your previous accountant, to updating Companies House with your new registered office address, let us handle all of the admin so that you can get on with running your business, safe in the knowledge that everything is going smoothly in the background.

TALK TO US