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Childcare Tax Relief

Childcare Vouchers are currently tax and NI exempt up to £243 a month for everyone, generating valuable savings for parents and employers.

However, it has been decided that those paying higher and additional rates of tax who join the scheme after April 2011 should only be able to make the same tax savings as those paying basic rate tax. In practice, this will be implemented by restricting the amount of tax exempt vouchers that higher and additional rate tax payers will be able to receive.

The changes only apply to parents who join a scheme on or after 6th April 2011 - This means that by joining a scheme now, a parent can save up to £910 a year more! For full information visit