For many working parents, the heaviest burden on their finances is childcare. Childcare can be one of the largest monthly bills and as such some parents have even considered giving up work as a large proportion of their wages is spent on
When parents look at their childcare options they are often uninformed about the financial support they can get to help with childcare costs. Parents want affordable childcare without having to compromise on quality – Childcare Vouchers are the answer.
Childcare Vouchers can appear to be complicated; Busy Bees Benefits, a renowned Childcare Voucher provider is on hand to make them as simple as possible:
What are Childcare Vouchers?
Childcare Vouchers are available from your employer to help you save money on your childcare costs. They are then used by parents to pay their childcare provider.
How do they work?
Vouchers are deducted from your salary before you pay tax and National Insurance. Tax and National Insurance is then taken from the remaining salary which means you pay less tax, saving up to £933* per year.
Basic rate tax payers are entitled to exchange up to £243* per month from their wages in return for the same amount of vouchers. Higher rate tax payers can exchange up to £124* per month and additional rate tax payers can exchange up to £97* per month. Childcare Vouchers are available per parent, which means that both parents can join their employers Childcare Voucher scheme, potentially doubling the savings.
Where can they be used?
Childcare Vouchers can be used to pay for any registered childcare for children up to the age of 16. Childcare providers must be registered with Ofsted or an equivalent governing body. For more information about Childcare Vouchers please visit: Busy Bees Benefits