Childcare Voucher FAQs

You can continue to receive Childcare Vouchers as long as you remain eligible (see above). If you leave the scheme, or are no longer eligible, you will still be able to use any Childcare Vouchers in your account to pay for registered childcare.

If you move to a new employer you will be treated as a new entrant, therefore you will no longer be entitled to receive Childcare Vouchers through your new employer, however you will still be able to use any Childcare Vouchers that are in your account to pay for registered childcare. If you have a balance of Childcare Vouchers when you are leaving your employer, it is your responsibility to check with your employer if these can be returned to you through your payroll.

The amount you can salary sacrifice – ie pay into – your Childcare Voucher account depends on your income tax rate:

• A Basic rate tax payer can salary sacrifice up to £55 per week – £243 per month – £2,915 per year
• A Higher rate tax payer can salary sacrifice up to £28 per week – £1,484 per year.
• An Additional rate tax payer can salary sacrifice up to £25 per week – £1,325 per year.

Backdating:  If an employee has been salary sacrificing less than their full allowance per month eg £150 instead of £243 (subject to certain rules) an employer can allow an employee to retrospectively claim their full entitlement to Childcare Vouchers. This in known as ‘backdating’. Please note:  This is subject to an employer’s discretion, and can only be used to avail of Childcare Vouchers within the current tax year.

If an employee wants to make changes to their sacrifice arrangement, their contract of employment must be altered with each change. It may be necessary to change the terms of a salary sacrifice arrangement where a lifestyle change significantly alters an employee’s financial circumstances (eg Covid-19). This is at the employer’s discretion so speak to your employer to find out if they permit opting in or out of their Childcare Voucher scheme.

Your employer is not allowed to deduct Childcare Vouchers from your Statutory Maternity Pay (SMP). However, if you can make a salary sacrifice from your salary over and above Statutory Maternity Pay, for example, company maternity pay, Keeping In Touch (KIT) day or holiday pay, you can continue to receive Childcare Vouchers 

If you have no earnings over and above SMP your Childcare Vouchers will stop, however you will still be considered to be a member of the Scheme provided you have made at least one payment into your account in any consecutive 52 week period.

Yes, as long as you remain eligible (see above). However, the maximum amount you can pay into Childcare Vouchers from your salary remains £243 per parent, per month, no matter how many children you have.

If you need to take a break from using Childcare Vouchers for example, for a career break or maternity/paternity leave, you will still remain a registered user of Childcare Vouchers as long as you:

1. Make at least 1 salary sacrifice payment into your Childcare Voucher account in each 52 week period (payment must reach your account with 52 weeks)
2. Do not join Tax-Free Childcare
3. Do not change employer.

Yes, where there is a business takeover or merger employees are protected under Transfer of Undertakings (Protection of Employment) – TUPE - or COSOP regulations. These employees will not be treated as new joiners to the scheme. If the new employer does not offer the Childcare Voucher scheme they can start to do so however it will only be open to those eligible employees who were in the scheme prior to 4 October 2018 and are protected under TUPE or COSOP regulations.

If you have previously been in the Childcare Voucher scheme, and left this to open, and have paid into, a Tax-Free Childcare Account you can’t re-join your employer’s Childcare Voucher scheme.