Employers: you need action plan for tax-free childcare rolling out from April 2017

March 29, 2017

Edenred created the UK’s first Childcare Voucher scheme in 1989. Here’s the company’s take on key changes confirmed in the Chancellor of the Exchequer’s March 2017 budget speech, regarding the roll out of Tax-Free Childcare will begin from April 2017 to reach all eligible parents by the end of the year.

hr180.co.uk childcare vouchers, tax-free childcare

Changes introducing tax-free childcare are just around the corner, so how does that impact you, as an employer? If you haven’t already, you need to ensure you have an action plan in place to prepare. It will impact your working parents and your bottom line through reduced employer NI savings.

Key message for your employees

Working parents should be reminded that they do not need to make a hasty decision right away. Many people will actually be worse off under the new scheme, or not even eligible to join.

If you are an Edenred member…

For members of the Edenred scheme the following will be occurring – check with your own Childcare Vouchers supplier for their timeline.

  • The Childcare Vouchers scheme will run alongside Tax-Free Childcare, but you cannot be on both schemes at the same time.
  • Childcare Vouchers will be closed to new entrants from April 2018. Should your family situation change over the next 12 months, so too could the decision over which scheme is best for you.
  • By joining, or staying on the employer Childcare Vouchers scheme, you can keep your options open, so you have the choice nearer the time. Once April 2018 comes around, that choice will be taken away if you are not already on the Childcare Vouchers scheme.
  • Anyone who joins the Childcare Voucher scheme before April 2018 can keep receiving the vouchers for as long as they need to beyond this date.

Leeds based HR180 is a team of superheroes in HR Outsourcing, Projects and Consultancy committed to work in partnership with organisations of all sizes to establish working policies to go above and beyond Employment Law requirements, to protect both employees and employers alike. We love to hear from you, so call us on 0113 287 8150 or hit the Rescue Me button.

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