News

Tuesday 13th March 2018

Your company can use the childcare voucher scheme for a wide range of kids activities

Provided the childcare or club is Ofsted registered, you can save tax if your company gives you vouchers or engages directly with the provider.

Childcare providers can include:

  • Nurseries
  • Nannies
  • Au pairs
  • Crèches
  • Childminders
  • Out of school clubs
  • Extra-curricular activities (such as music lessons)
  • Breakfast and after-school clubs
  • Holiday clubs or schemes
  • Activity holiday companies including Activate Sport, Barracudas, Camp Beaumont, XUK Activity and XUK Excel
  • Qualifying childcare offered by schools

You can contract directly with the childcare provided or use a voucher system. To contract directly, you will need to write a letter from the company to the provider and ask them to invoice the company directly for the childcare of (name of the child).

Alternatively, the company can purchase electronic vouchers from voucher provider. These vouchers are then used to pay for childcare.

Note

  1. Your company can pay up to £243 pcm for a employee's childcare, so an owner-director can save £46 per month in Corporation Tax. This is a tax-free benefit to you from the company.
  2. The voucher providers charge a fee for their service. 
  3. These schemes are closing to new entries from October 2018 and contracted childcare or vouchers must have been paid by 1 October 2018.