Don’t forget the government does offer a variety of ways for you to re-cover your child care fees.
Local Authority Funding
All children are eligible from 3 years of age to a free place in a state nursery. This usually comes in the form of a 2.5 hour place either in the morning or in the afternoon(2 on a Friday) Total of 12 hours per week.
Having placed your child in a private nursery for whatever your reason may be, your child will be missing out on that place. So the government decided that as long as we provide a recognised standard of education, which we do, (that’s why we promote being a Registered Provider of Education) they will subsidise your child’s place here with the equivalent value.
Your child must however attend a minimum of 3 times per week.
Example ; If your child attends
Three times you will be reimbursed to the value of £257.01 per term
Four times you will be reimbursed to the value of £342.68 per term
Five times you will be reimbursed to the value of £428.35 per term
This money is only issued three times a year (its in relation to the school term) and never on a fixed date. The figure above simply shows how it works out on a monthly basis. The council give us the money and we transfer it straight back to you as soon as we get it. All you have to do is provide us with your Child’s birth certificate, which we will ask for when his/her third birthday is looming, and we do the rest.
You may be able to get help from the government to pay for childcare. You must use ‘approved childcare’ to qualify for help. To find out if you are eligible for Tax Credits either contact 0345 300 3900 or visit https://www.gov.uk/help-with-childcare-costs/overview
It is paid directly to you and can take some time to arrange. Please bear this in mind if you are banking on this money as we will still expect your bill to be paid when your child starts and/or at the first of the month.
When returning to college, sometimes there are opportunities to claim a grant towards childcare. You will need to speak to the college/job centre about this. If your bill is to be paid by the college/job centre, we will need this in writing from whoever is going to pay the bill. Until this is done, we will expect you to commence payment.
Did you know that the amount of money you spend on childcare per month can be deducted from your monthly wage without tax being taken from it.
Basic-rate taxpayers can pay for up to £243 of childcare with vouchers each month (£55/week). This is PER PARENT, so two working parents could get £486 of vouchers each month
Basic-rate (20%) taxpayer:£55/week voucher, max annual tax/NI saving £930.
Higher-rate (40%) taxpayer: £28/week voucher, max annual tax/NI saving £630.
Top-rate (45%) taxpayer: £25/week voucher, max annual tax/NI saving £590.
You will need to arrange this with your employer as there are different agencies that they will be registered with eg Sodexo, Eden Red etc.
The voucher will need to be passed onto the Nursery via email or by hand and this amount will be deducted from your bill.
*** Warning there is a new scheme about to be introduced in Autumn 2015
Under the new scheme, eligible families will get 20% of their annual childcare costs paid for by the Government. The way it works is that for every 80p you pay into a newly-created Childcare Account, the Government will contribute 20p. This could mean up to £2,000 per child (the scheme assumes a maximum of £10,000 per year childcare costs per child. If you pay more, you won’t get more help).
The new scheme will be open to single parents/couples who work eight or more hours a week, including self-employed, and who pay for CSSIW registered childcare for a child under the age of 12, or under 17 if the child is disabled.
It will also be open to ALL qualifying parents, unlike childcare vouchers which can only be bought by people whose employer offers the scheme. You can’t enrol just yet. We will update our paperwork when this comes on line
To be eligible for Tax-Free Childcare, you will need to:
Have one or more child aged under 12.
Be working – this means both of you if you’re in a couple.
Earn between £2,420 to £150,000 a year. This applies to both of you if you’re in a couple (so if one earns more than £150,000, then as a couple, you can’t access Tax-Free Childcare).
Not be claiming tax credits (this includes the childcare element of Working Tax Credit) or universal credit.
Tax-Free Childcare wins for:
Self-employed people or couples who earn less than £150,000, as they’re eligible for Tax-Free Childcare, but can’t get childcare vouchers.
Parents with more than one child and high childcare costs, as the help available goes up with the number of children. There’s a limit for childcare vouchers which isn’t dependent on the number of children.
Childcare vouchers win for:
Couples where one parent doesn’t work, as they’re not eligible for Tax-Free Childcare, but the employed parent is eligible for vouchers (provided their employer offers a scheme).
Basic-rate taxpayer parents with total childcare costs of £9,336 or less. Under this amount, the saving you make with childcare vouchers exceeds the saving you can make with Tax-Free Childcare.
Higher-rate taxpayer parents with total childcare costs of £6,252 or less. Under this amount, the saving you make with childcare vouchers exceeds the saving you can make with Tax-Free Childcare.
Additional-rate taxpayers, as anyone earning £150,000+ isn’t eligible for the scheme, whereas additional-rate taxpayers can get childcare vouchers.
If you would like any more information on funding and how it can help reduce your childcare costs please feel free to e-mail our finance department on email@example.com