The current scheme allowing tax free purchase of childcare vouchers may be coming to an end. Currently we can make up to a £243 per month ‘salary sacrifice’ through the payroll for the purchase of recognised childcare vouchers. The ‘salary sacrifice’, or ‘salary exchange’, is a deduction made on the gross pay before Tax and National Insurance is calculated and as such is a very efficient method for purchasing child care for most people.
The proposals are not finalised and it appears there will be some form of “tax free” childcare to replace the current scheme but what form that will take we do not know. It is always possible that nothing will change but….
