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Childcare vouchers are an employee benefit offered by employers to support working parents.
Employees can choose to spend up to £243 a month1 of their gross salary, before tax and National Insurance, on vouchers towards the cost of registered childcare.
The vouchers can be used for all types of Ofsted registered childcare such as nurseries, after school clubs and summer clubs.
There are attractive savings for the employee. For example, a basic rate taxpayer who requests the full £243 voucher value each month can save around £900 a year in tax and NI, depending on their circumstances.
1 Annual Employer NI savings for a Basic rate taxpayer taking the full £243 voucher value. The maximum savings available will be less for higher and additional rate taxpayers.
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