Childcare Plus is a tax efficient way to pay for childcare using childcare vouchers.  Currently staff can choose to use part of their salary to receive up to £243 per month in childcare vouchers through the scheme. These vouchers are free from tax and National Insurance.  This currently means that staff that join can make savings of up to £857 a year for basic rate tax payers and £1196 a year for higher rate tax payers.

Due to a change in tax rules higher rate tax payers who join the scheme from the 6th April 2011 will only be able to receive up to £124 of vouchers per month and additional rate tax payers will only be able to receive £95 of vouchers per month.  This will reduce savings available to these participants.  If these staff join Childcare Plus before the 6th of April they will not be affected by this change.

More information on Childcare Plus and how to join is available here

The changes will not affect staff that are basic rate tax payers or those currently participating in Childcare Plus.

First published: 14 February 2011