FAQ’s


  • Armed Forces FAQs

    • Who can join the scheme?

      You can join the scheme if:

      • You are a parent or legal guardian responsible for and paying towards the upkeep of a child.
      • Your child is under the age of 16 when you use the vouchers (1st September following their 15th birthday, or 1st September following their 16th birthday if they are registered disabled).
      • You are planning to enrol your child at or your child is attending any form of registered childcare, which can include nannies, childminders, nurseries, play schemes, out-of-hours school clubs, holiday camps and the care element of boarding schools. Childcare vouchers cannot be used towards the compulsory education element of school fees. In order to use childcare vouchers towards the care element of the fees the compulsory education element must be separately itemised on the school bill. If CEA is claimed, childcare vouchers can only be used towards the portion of the school bill not covered by CEA.
      • Your salary remains above the national minimum wage AND the lower earnings limit AFTER you have taken childcare vouchers. This is to ensure you always pay the minimum amount of National Insurance on which a number of state benefits, including Statutory Sick Pay and Statutory Maternity Pay, are dependent.

    • How much will I save?

      The amount you save depends on the value of the vouchers you choose to take, your tax rate which is based on your salary, and your National Insurance contributions. You could currently save up to £933 as a basic rate tax payer, £623 as a higher rate tax payer and £606 as an additional rate tax payer

    • Is the scheme right for me?

      The scheme benefits are great, but there are some circumstances that you need to take into consideration before you decide. HM Revenue & Customs (HMRC) govern all childcare voucher schemes, and offer a Childcare Indicator for you to assess your personal family circumstances prior to applying for childcare vouchers.

    • How do I know how much to take?

      The amount you can take per month is up to you, within the limits of your tax band (please see the table below). The childcare vouchers you receive are valid for 18 months (and renewed if necessary) and can be spent whenever you want, so it doesn’t matter if your childcare costs vary – you can still take vouchers each month and keep them for when you need them. Please round the amount you require up or down to the nearest pound.

      Your Tax Band

      Amount

      Basic

      £30 – £243

      Higher

      £30 – £124

      Additional

      £30 – £97

      If you're unsure which tax band you fall into visit www.hmrc.gov.uk/rates/taxes-ni.htm

    • What about my carer?

      Most childcare providers are happy to accept childcare vouchers as long as you adhere to their own payment terms. Your carer does not need to have a computer or internet access to receive e-voucher payments. They will receive your payment directly into their bank account (by bank transfer) with an attached reference which you choose.

      Remittance advice can be provided in paper or email format – whichever they prefer. To join the scheme you must nominate at least one approved carer. Others can be added to your childcare voucher account at any time – all you need to do is let us know. If your carer does not know about Childcare Vouchers, you can download an information leaflet and registration agreement from the 'leaflets and forms' section of the website.

    • Will childcare vouchers affect my pension?

      Most pension providers accept childcare vouchers as notional pay i.e. base their calculation on the pre-sacrifice salary total with no negative effect on pension contributions. The AFPS 75 and AFPS 05 treat childcare vouchers as part of your gross pay package. AFPS 75 uses a representative salary for your rank to calculate your pension, while AFPS 05 calculates your pension using the pre-sacrifice salary level.

    • Will childcare vouchers affect my statutory maternity or paternity pay?

      New Regulations have come into force for babies born after 5th October 2008. You have 3 options in relation to your Childcare Vouchers whilst on Maternity Leave.

      • Option 1 - You can withdraw from the Childcare Voucher Scheme (this must be no later than 23 weeks before your baby is due). This will ensure that your SMP calculations are based on your higher salary (not including your salary sacrifice deductions). If you withdraw from the Scheme your Childcare Vouchers would cease from this date.
      • Option 2- You can remain in the Childcare Voucher Scheme during Maternity Leave. Your SMP will then be calculated at the lower rate (after salary sacrifice deductions). As your SMP is being calculated on your lower salary, no further deductions can be taken off SMP. Therefore whilst you are on Maternity leave and receiving SMP, your voucher costs will be covered by the company and you will continue to receive your Childcare Vouchers during this time.
      • Option 3- A woman may opt out of the childcare voucher scheme during the period which SMP is calculated. This is 8 weeks between approximately week 17 and week 25 of pregnancy. A woman could opt out during this period and then re-join the scheme after week 25 which means the company would cover her vouchers during her maternity leave and her SMP would not be affected.

      Before making your decision, you should seek advice from any relevant agencies in relation to tax credit implications or ongoing childcare costs.

      The obligation for the company to provide vouchers only occurs in respect of a woman who already has one qualifying child on the voucher scheme.