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. New entrants will be able to join an established childcare voucher scheme until April 2018. 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 voucher scheme will depend on the employee's own personal circumstances.
Workplace nurseries are unaffected by the introduction of Tax-free Childcare.
Tax-free Childcare is being rolled-out gradually and will be available in relation to all children under 12 (where parents qualify) by the end of March 2018. It is available from 21 April 2017 for parents of a child who is aged under four on 31 August 2017 or of a child who is disabled (aged under 17). From 24 November 2017, Tax-free Childcare will be extended to parents whose youngest child is under six, or whose sixth birthday is on 24 November 2017.