Funding
Childcare vouchers / direct to nursery vouchers work in the following way. They are exempt from tax and national insurance contributions (up to a maximum of £243 a month can be claimed per parent) therefore you will only pay tax and national insurance on the reduced level of your salary. This effectively saves you money on childcare costs as well as making more savings for you. Remember this allowance is per person, so effectively you will save double.
The majority of employers will normally run a scheme with the help of a childcare voucher company and will pay that company an administration fee for their service. The voucher company will either supply you directly with your childcare vouchers or they will provide your employer with them, which they will distribute to staff accordingly. We are registered with numerous childcare voucher companies and are happy to register with others to assist you in making this saving.
About the Early Years Grant for 3yr & 4yr Olds
The following information has been taken from the government website with regards to the free early year’s childcare that is offered.
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All 3 to 4-year-olds in England can get free early education or childcare. The free early education and childcare must be with an approved childcare provider, and stops when your child starts in reception class (or reaches compulsory school age, if later).
15 hours free childcare
All children in England get 15 hours free per week for 38 weeks of the year.
You can get it from the term after your child’s 3rd birthday.
30 hours free childcare
You may be able to get up to 30 hours free childcare, which you can choose how you take.
If you’re eligible for the extra hours, you sign up online to get a code to give to your childcare provider to reserve your place. You’ll get the extra hours once the next term starts.
Eligibility
You can usually get 30 hours free childcare if you (and your partner, if you have one) are in work (or getting parental leave, sick leave or annual leave), and each earning at least the National Minimum Wage or Living Wage for 16 hours a week. This earnings limit doesn’t apply if you’re self-employed and started your business less than 12 months ago.
You’re not eligible if your child doesn’t usually live with you, the child is your foster child, either you or your partner has a taxable income over £100,000, or if you’re from outside the EEA and your UK residence card says you can’t access public funds.
You can get 30 hours free childcare at the same time as claiming Universal Credit, tax credits or childcare vouchers.
If you can’t work, you may still be eligible if your partner is working, and you get Incapacity Benefit, Severe Disablement Allowance, Carer’s Allowance or Employment and Support Allowance.
Apply for 30 hours free childcare
You’ll need your details (and your partner’s, if you have one), including your National Insurance number and Unique Taxpayer Reference (UTR), if you’re self-employed. You’ll get a childcare account if your application is successful. You can use it to get your code for 30 hours free childcare.
In line with your set childcare booking you need to be aware that you will be required to pay for any additional hours over and above the free hour’s entitlement. Each month you will receive an invoice advising you of your fees for that month in agreement with our terms and conditions. To be eligible for the grant the Nursery Manager will provide you with the Parental Declaration Form that must be signed and returned to the nursery as soon as possible.
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For further information on how the free early years childcare will benefit you and on how to make the most of this either with your current childcare booking pattern or possibly extending the childcare arrangements you have in place please speak with the Manager at your earliest convenience. More information can be found on the gov.uk website here.