Download [VERIFIED] Nursery Scheme Of Work
Merel Cofran
Hundreds of thousands more working parents will be supported through an extension of the free childcare on offer, more than doubling the current support in place. This will help mums in particular to stay in work and keep the economy growing.
We know that childcare is one of the biggest costs facing working households, which is why we want to make it cheaper and more accessible, to reduce the barriers preventing some parents from going back to work.
Tax-Free Childcare is a government scheme that helps with childcare costs up to a maximum of 2,000 for each eligible child each year (4,000 if your child is disabled). Tax-Free Childcare is a UK-wide scheme covering England, Scotland, Wales and Northern Ireland.
To be eligible for the Tax-free Childcare Scheme, you must be working (and if you have a partner they must work too), and you must not be receiving any support through Tax Credits or Universal Credit. Most parents who are eligible for Universal Credit or Tax Credits can save more money using the childcare elements of these benefits instead of using Tax-Free Childcare.
Periods on maternity leave, sick leave, paternity leave, parental leave, adoption leave and shared parental leave will count as being in work. However, eligibility is limited to the last 31 days of leave where parents are claiming for a new child, whose birth or adoption led to the time off.
No. If you are due to start work (or return to work) within the next 31 days, you can apply for Tax-Free Childcare as long as you and your partner are eligible and you will each have an income of at least 2,167 every three months. This works out to roughly 166 each per week.
Periods of maternity and statutory family leave are counted as being in work, and the earnings requirement does not apply. This means that you can be eligible for Tax-Free Childcare while on maternity, adoption or shared parental leave.
Unfortunately not for the child that you are on leave to care for, unless you are taking KIT days within the 31 days prior to your return to work. This is because you are not eligible to claim Tax-Free Childcare while on maternity leave for the child you are on leave to care for, until the last 31 days of leave.
We advise that when negotiating working KIT days with your employer, that you discuss childcare arrangments and expenses. For more information on KIT days, see our article on working during maternity and family leave.
If you make an application for Tax-Free Childcare while receiving childcare vouchers, your vouchers will end and you will not be able to re-apply. So you should consider carefully which scheme you are better off using before deciding to apply for Tax-Free Childcare.
Only those signed up to a voucher scheme prior to October 2018 can continue in this type of scheme. People who are already using the childcare voucher scheme are able to continue using it if they wish (unless their employer brings it to an end).
The maximum you can receive through Tax-Free Childcare is 2,000 each year. Therefore, if you receive more than 2,000 towards your childcare costs in an employer supported scheme, you are likely better off staying in that scheme.
You might be able to get an additional 15 hours of free childcare a week if you are in work, giving you a total of 30 hours a week for 38 weeks a year (1140 hours in total). To be eligible for this, you must be a single parent in work, or part of a couple where both parents are in work, and:
You can get funded preschool education in a nursery school, primary school with nursery class, or from some private and voluntary providers. This is available the year before your child enters Primary One. You can find out how to apply for funded preschool education here.
All three and four year olds can get a minimum of 10 hours of free, part-time Foundation Phase education in a school, or funded nursery. Some local authorities offer more than this. To find out more, contact your local authority.
The Welsh government intends to offer 30 hours per week of free childcare for 48 weeks a year to working parents. At the moment, this is being piloted in seven local authorities. You can find out whether you live in one of these authorities here.
Tax Free Childcare is paid to help parents in work with the cost of childcare. The government will add 2 for every 8 you pay for childcare, up to a maximum of 2000 per child per year (or 4000 per year if your child is disabled). You can only use it for approved childcare. This means a registered childminder, play scheme, nursery, or club, a registered school, or a home care worker working for a registered agency.
For both Universal Credit and Working Tax Credit you must use approved childcare. This means a registered childminder, play scheme, nursery, or club, a registered school, or a home care worker working for a registered agency.
Hi all!
Has anyone here used the workplace nursery benefit (where your employer partners with a nursery through whichever scheme provider and the nursery fees come out of gross salary)? I cannot seem to find any mention of it on any GOV website and frankly it seems too good to be true! The savings over paying directly will be something like >5k per year for the nurseries we are looking at so obviously would love to take advantage as my employer offers it, but just wondered if there were any strings attached or if it wasn't as brilliant as it sounds?
If anyone has used the scheme before it would be great to hear as i cannot see anything online really!
Thanks in advance!
Hi - LA Early Years and Childcare Officer so I can give some advice about different ways to pay for childcare. This link gives information about the scheme from an employer's view www.gov.uk/expenses-and-benefits-childcare
Here's a link to salary sacrifice benfits for an employee. www.gov.uk/guidance/salary-sacrifice-and-the-effects-on-paye
Yes @imnottoofussed that is the one that is being offered my my employer. Good to hear that someone else is using it! I hadn't heard of it and it just seems quite a bit more generous than any of the other schemes on offer so thought there may be some hurdles! Do you know if your friend found the process easy and if they were able to get the nursery that they wanted on it?
Thanks @CupcakesK! Great to hear directly from someone who uses it! Have already run the numbers and workplace nursery savings will far exceed that of tax free childcare (especially as we will be looking for full time nursery at SW London prices!) which is why i was surprised it wasn't more commonplace!
Looks like the only real downside is having to commit to a full year each time which i think we can deal with!
I use an NHS trust nursery and salary sacrifice 490 a month. I save around 33%. My pension contributions don't seem to have been hugely affected either. Ive never seen my "full" wage since going back to work after maternity leave so I don't even notice it going out.
Hi all, I've just found this thread and wondered if the workplace nursery benefit is still running in your companies? My company are considering joining so would be good to know if it actually works and you find it helpful. Thanks so much
It definitely can be any nursery it doesn't have to be one specific nursery or in the company premises.
If you ring the company I linked to earlier in the thread I'm sure they will explain all about it, friend is still using them.
Yes but they can join a third party scheme like the one I linked who will set it up for any nursery the parent is using. So yes it can be one nursery but nothing stopping the employer working with multiple other nurseries by going through a third party scheme.
Op can ask her employer to set up with the benefit supplier who will do the scheme with her nursery. Then employer doesn't have to do anything particularly taxing or set up their own nurseries/links to nurseries
My workplace does employer-provided nursery with salary sacrifice. Can I still get tax free childcare as well (500 every 3 months)? The nursery seems to think so. According to the gov website: www.gov.uk/expenses-and-benefits-childcare/whats-exempt it looks like they don't have to report anything, suggesting that I would be able to apply for the credits.
Does anyone know?
New or existing employees of the University (but not employees of other organisations working within University departments) are able to benefit from savings on the cost of fees at University Nurseries if they are eligible to join the University Salary Sacrifice Scheme.
Under this scheme, the employee agrees to reduce their salary by the amount of their nursery fee and in return benefits from lower tax and national insurance deductions on the reduced salary. The salary deduction is paid direct by the University to the nursery provider. Please note that when using the salary sacrifice scheme, the amount deducted must not take your pay below minimum wage level (as this is an HMRC requirement). Should there be a shortfall, Childcare Services will contact you to arrange payment of the difference by another means.
The scheme covers all the University Nurseries, as well as the University-owned spaces with our Community Nurseries under a Workplace Nursery Agreement. Parents whose children attend participating College Nurseries may also benefit from the scheme. Employees using other nurseries are not eligible for the scheme.
Employees who decide to participate sign a written agreement amending their employment contract to reduce their salary by the equivalent cost of their nursery fees. The fees are paid by the University direct to the nursery provider. Fees are deducted retrospectively, i.e. nursery fees are deducted from your salary at the end of the month.
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