Can employers still operate a childcare voucher scheme following the introduction of Tax-free Childcare?
Yes, employers can still operate a childcare voucher scheme, although new entrants will not be able to join a scheme from October 2018.
The Government had said that the last day that new entrants would be able to join an established childcare voucher scheme would be 5 April 2018. However, on 13 March 2018, it announced that the closure of schemes to new entrants would be delayed by six months. Employees will be able to continue to benefit from an existing childcare voucher scheme, provided that they remain employees of the employer, and the employer continues to offer the scheme.
Whether or not an employee is better off under an existing childcare voucher scheme or under the Tax-free Childcare 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 available for parents whose youngest child is under 12 and parents of a child who is disabled (aged under 17).