The Child Care Voucher Scheme is a UK government initiative aimed at helping working parents to benefit from tax efficiency in order to save money on childcare. This scheme is usually offered as a salary sacrifice scheme, which means that English parents in the scheme can sacrifice part of their salary to obtain a parenting voucher (of the same amount). In doing so, parents do not pay any national tax or insurance that contributes to a parenting voucher scheme up to the specified limits. Because of this tax efficiency, the daycare voucher scheme has restrictions in place, after which you will pay for child care in the usual taxed manner.
For example, parents who are given Ã, £ 55 per week (Ã,  £ 243 per month) on a Children's Voucher after taking the same salary sacrifice, will then benefit by saving up to Ã,  £ 933 tax/NIC.
Video Childcare voucher scheme
Apa yang dapat digunakan untuk voucher penitipan anak?
Child care vouchers can be used for parenting, au pair, after-school clubs, and other registered child care providers. Child care providers should contact the relevant Child Care Voucher provider to register with them and be redeemed, redeemers must be arranged (ie for their UK redeemers to be Ofsted listed). You can find out more about how to sign up through the various references at the bottom of this page.
Maps Childcare voucher scheme
Business is also profitable
The nature of the scheme has allowed many businesses to benefit from running the scheme as well. Although originally intended for parents working in the UK, by providing a business scheme essentially lowering their own national insurance contributions because the voucher is waived from the employer's NIC. Businesses also find other benefits in increasing staff satisfaction and staff turnover reductions, indirectly saving on costs such as hiring and training staff.
Feasibility
Parents working in the UK are eligible. This scheme is not provided on a per-child basis, but on a per-person basis, so both parents may claim under the scheme rules. This scheme can be available at the same time as the job tax credit, however, this may not always be beneficial. It is possible to use a calculator to ensure that both of you will save money and to find out how much you might save.
Obtain voucer
Child care vouchers are provided by employers, usually through the provider of child care voucher schemes selected by the company. If you want to know if your company offers a parenting voucher scheme and who your childcare voucher scheme is provided by you should ask the HR department or your salary who your provider is, or encourage them to register with the provider. There are many providers of child care voucher schemes available, many of which offer additional benefits over parenting voucher schemes.
History
The Childcare Voucher Scheme was first introduced by Sue Harvey, Managing Director of Luncheon Voucher Group in 1989. Since then many people have benefited from using this scheme. In 2009, a petition began on the "No. 10" website to stop the government from closing the scheme. Since the recession the government had considered closing the scheme and hence, getting more taxes, however, Gordon Brown Prime Minister at the time, decided against it. The petition finished with 93,000 signers on it, and although it is now closed, it is still available for viewing (Wikipedia blocks word petition so it can not be included in the reference). In April 2011, the government did cuts to the scheme to ensure that high beneficiaries benefited less from the scheme. This is achieved by limiting the higher amount and additional tariffs the taxpayer may receive tax and NI exemptions.
- The basic rate taxpayer can have up to £ 55 per week (Ã, Â £ 243 per month) tax and NI waived
- High-end taxpayers can have up to £ 28 per week (Ã,Â, 124 per month) tax and NI is exempted
- Additional rate taxpayers can have up to £ 25 per week (Ã, Â £ 110 per month) tax and NI exempt
Restrictions apply only to those who join this scheme on or after April 6, 2011. Those who have received a daycare voucher on this date may receive a tax of £ 243 per month and tax-free NI until they stop receiving vouchers for more than 12 months, changed employer or no longer qualify for this scheme.
References
External links
- Government is better than Calculator
Source of the article : Wikipedia
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