Join the Childcare Voucher Scheme before April 2011 to make the maximum savings.
The taxation of Childcare vouchers if you have responsibility for children under 15 is changing.
All employees with Children up to 15 (16 if they are registered disabled) can currently receive £243 a month of their savings on any registered childcare.
From April 2011, the changes are being restricted for those paying higher rate and additional rate tax.
Higher rate tax payers who are not registered on the scheme by the 1st April 2011 will only be able to receive £124 a month tax an NI exempt.
Additional rate taxpayers who join the scheme on or after 1st April 2011 will only be allowed to receive £97 a month tax and NI exempt.
If you are already part of the scheme before this date you will continue to be entitled to £243 a month tax and NI exempt regardless of the level of tax you pay. If you leave the scheme and rejoin at a later date the new lower rates will apply.
This means that by joining the scheme now you can make the maximum possible savings.
For more information contact your HR Administrator.