Will employers still be able to operate a childcare voucher scheme following the introduction of Tax-free Childcare?
Yes, employers will still be able to operate a childcare voucher scheme, but only where the employer already operates such a scheme. Once Tax-free Childcare is introduced, it will not be possible for an employer to establish a new childcare voucher scheme, nor will it be possible to allow new entrants to join an established childcare voucher scheme. Therefore, employees will be able to continue to benefit from an existing childcare voucher scheme in the same way as they currently do, provided that they remain employees of their current employer, and the current employer continues to offer the scheme.
Whether or not an employee is better off under an existing childcare voucher scheme or under the new Tax-free Childcare scheme will depend on the employee's own personal circumstances.
Workplace nurseries are unaffected by the introduction of Tax-free Childcare.
The Government has said that Tax-free Childcare will be introduced in early 2017.