The government’s Tax-Free Childcare (TFC) scheme provides annual savings of up to £2,000 per child if your child-care costs for children up to age 12 (age 17 if disabled) are more than £10,000 per child per year.
Intuit's child-care voucher programme through Sodexo was closed to new joiners in Oct 2017. After then only existing members can continue to receive childcare vouchers.
Eligibility
TFC scheme
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Both parents must work. (Self-employed parents are eligible.)
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Parents must have minimum earnings of more than £125.38 per week and
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Maximum earnings of £100,000 per year.
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Parents cannot be in receipt of tax credits.
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If parents are separated or divorced and living at separate addresses, only one household can claim
How it works
TFC scheme
Parents have an online account and must confirm their eligibility each quarter. The account is topped up by the government with 20p for every 80p contribution by parents, employers, or family members, up to a maximum of £2,000 per child per year (£500 per quarter).
For disabled children, the saving is doubled to a maximum of £4,000 based on £20,000 in child-care costs.
Child-care voucher savings (closed)
Intuit’s child-care voucher programme through Sodexo was closed to new joiners in Oct 2017. After then only existing members can continue to receive childcare vouchers.
Tax and NI savings are available on up to £243 child-care vouchers per month per eligible parent. If you decide to take vouchers instead of equivalent salary, you will not have to pay any tax or NI on the voucher part of your pay. The approximate saving for a basic-rate taxpayer is £933 per year and for a higher-rate taxpayer is £623 per year.
To make the tax and NI savings, the contract will run for a minimum of a year. After that period, you will be required to give Sodexo one month’s notice before you wish to withdraw from the scheme, or if you wish to change the amount you have selected.
Refunds are not possible for unused vouchers; however, should you experience a life-changing event, such as a death, divorce, marriage, new baby, or child starting school—during the period the contract is effective—you may withdraw from the scheme.
Should you experience a period of no pay, other than during maternity leave, your vouchers will stop during that period.
You may choose from one of four schemes: email or postal vouchers, vouchers accessed through Darwin, your benefits administrator, an online account, or automatic payments to your child-care provider. Your vouchers will be credited to your account on payday, are valid for 32 months, and can be reissued indefinitely for an additional 32 months upon request.
Resources
Tax-free childcare and childcare vouchers by Sodexo
Where to get help
Sodexo
0800 328 7411
Email Sodexo
Visit website