Child Care Voucher Changes - Act now!

The April 2011 deadline is almost upon us! From 5th April higher-rate and additional-rate taxpayers who join a child care voucher scheme will have their tax-exempt childcare voucher allowance capped at £124 a month and £97 a month respectively. Basic-rate taxpayers who sign up after 5th April can continue to order up to £243 a month of tax-free childcare vouchers, but they will still be subject to an annual earnings assessment.

At this current moment, all parents can order up to £55 a week (£243 a month) of childcare vouchers, free of tax and National Insurance. However, higher-rate taxpayers who sign up for childcare vouchers after 5th April 2011 will only be eligible for tax and National Insurance relief on up to £28 a week (£124 a month) of childcare vouchers.