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Childcare vouchers

** Information provided by Nannytax.


Childcare Vouchers are a way for parents to save money on their childcare cost. They must be offered by your employer and act as a salary sacrifice. Please note that the current Childcare Voucher scheme only remains open to new applicants till April 2018.

How much can I claim?

Parents can claim up to £243 per month in Childcare Vouchers and if both parents’ employers offer the vouchers, both parents can claim the same amount. The amount that you are able to claim is dependent on how much you earn:

Annual Salary Amount that can be claimed per month
Up to £41,865 £243
£41,865 – £150,000 £124
More than £150,000 £97

Who can I pay with Childcare vouchers?

  • You can use Childcare Vouchers to pay for many different types of childcare, including nannies, childminders, and nurseries.
  • Only Ofsted registered nannies can receive the vouchers.

How they work with your employer

  • Childcare Vouchers are only available if your employer provides them as an employee benefit.
  • Parents will only be able to join a Childcare Voucher scheme at work until 2018.
  • If Childcare Vouchers are currently being used, this can continue for as long as the employer offers them.
  • Childcare Vouchers are being replaced by Tax-Free Childcare.
  • Families cannot use both schemes at the same time.
  • Childcare Vouchers are made up as a portion of your gross salary and are taken as a salary sacrifice.
  • This means that a smaller portion of your salary is taxed than normal and there is no tax paid on the voucher.
  • Once you’ve received your salary and paid your nanny you will have more money left over.

Step by Step guide

1  Approach your HR department at your work and request the vouchers.

2  You’ll be sent a ‘welcome pack’ by the voucher provider, including a registration for your nanny.

3  You nanny must fill out the registration form and return it to the voucher provider.

4  You’ll start to receive either paper or electronic vouchers.

5  Deduct the value of the voucher from your nanny’s net pay and pay them the rest as normal.

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