More and more parents are paying for childcare with Childcare Vouchers. But what is this revolutionary scheme about? And how does it work? Computershare Voucher Services answers some of the most common questions for you here.

What are Childcare Vouchers?
Childcare Vouchers are an employee benefit that can save working parents up to £1,196* a year on the cost of registered childcare.

How do I get them?
Your employer needs to offer them as an employee benefit. Any organisation, large or small, private or public sector, can operate a Childcare Voucher scheme. You simply exchange a part of your salary for the same amount of Childcare Vouchers, which are tax-free and National Insurance contribution exempt up to £243 worth a month.

So how does it work?
When you receive your Childcare Vouchers, you simply pay the person or people who look after your child with the Childcare Vouchers instead of cash or cheque. With advances in technology, you don’t even need to receive a paper Voucher, as most Childcare Voucher providers now offer electronic versions. This gives you the option to pay your carer electronically, through what is similar to an online bank account.

I employ a nanny. Can I pay them with Childcare Vouchers?
Yes, absolutely, providing your nanny is registered with Ofsted. Computershare Voucher Services already has more than 1,500 nannies registered to accept payment this way. All they need to do is redeem the Childcare Voucher by calling or emailing the issuing provider, if they receive paper Vouchers, and they will receive the money shortly afterward. By receiving electronic Vouchers, they will be paid automatically into their bank account.

What if my employer doesn’t offer Childcare Vouchers?
Give us their contact details and we’ll tell them why they should! It won’t cost them anything to offer a scheme; it actually saves them money because they don’t pay National Insurance contributions on the value of the Childcare Vouchers. At Computershare Voucher Services, we’ll even help them promote the scheme to their staff too.

It sounds too simple - there must be a catch?
No, it really is very straightforward. You just exchange a part of your salary for the same amount of Childcare Vouchers and spend them on registered childcare for children up to the age of 16. Both parents can join a Childcare Voucher scheme to double the family savings to £2,392* a year and it is open to both basic and higher rate tax-payers.

*The only real criteria is that any deductions (so the value of the Childcare Vouchers) don’t take you below Minimum Wage Level.

For more information, please visit the Computershare Voucher Services website or call 08000 430 860.