DSTL FAQs

The Childcare Voucher scheme is now closed to new entrants.

If you have missed the cut off then you can join the new Government scheme called Tax Free Childcare, this scheme is to help support working parents with childcare costs. With Tax Free Childcare (TFC) parents have an online account, the account will be topped up by the Government with 20p for every 80p contribution from the parents, up to a maximum of £2000 per child per year. For more information or to see if you are eligible to join TFC then please visit the Government TFC website www.childcarechoices.gov.uk

If you are already a member of the MOD Childcare voucher scheme then you are eligible to continue on the scheme, you can change your amounts, or leave the scheme for a short period of time. However, once you leave you, in order to remain a member of the scheme, you must re-join before there has been a 12 month break.

The amount you save depends on the value of the vouchers you choose to take and your total earnings. From April 6th 2013 you could save up to £933 as a basic rate earner, £623 as a higher rate earner and £622 as an additional rate earner.

The MOD Childcare Voucher scheme is now closed. If you have missed the cut off then you can join the new Government scheme called Tax Free Childcare, this scheme is to help support working parents with childcare costs. With Tax Free Childcare (TFC) parents have an online account, the account will be topped up by the Government with 20p for every 80p contribution from the parents, up to a maximum of £2000 per child per year. For more information or to see if you are eligible to join TFC then please visit the Government TFC website www.childcarechoices.gov.uk

If you are already a member of the MOD Childcare voucher scheme then you are eligible to continue on the scheme, you can change your amounts, or leave the scheme for a short period of time. However, once you leave you, in order to remain a member of the scheme, you must re-join before there has been a 12 month break.

The amount you can take per month is up to you, within the limits of your total earnings (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 whole pound.

Changes to childcare voucher entitlements and eligibility came into effect from April 2013. This may affect which earnings threshold you fall into and, as a result, may alter the maximum amount you can take in childcare vouchers. Please see below the savings you could make if you joined or join after April 6th 2013.

Most childcare providers are happy to accept childcare vouchers as long as you adhere to their own payment terms. Your childcare provider 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 have at leastone approved childcare provider linked to your account. You can add others to your childcare voucher account at any time. If your childcare provider does not know about Childcare Vouchers, you can download an information leaflet and registration agreement from the ‘leaflets and forms’ section of this website.

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.

Regulations in force for babies born after 5th October 2008 mean that 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.

If you wish to leave the scheme you must make this request by the last working day of the month to take effect the following month. In order to be eligible to continue on the scheme, you can change your amounts, or leave the scheme for a short period of time. However, once you leave you, in order to remain a member of the scheme, you must re-join before there has been a 12 month break.

Please remember, if you are a higher or additional rate earner considering leaving the MOD childcare voucher scheme and you were participating in it before 6th April 2011, you will lose your current entitlement of £2,916 per calendar year, which is £55 per week or £243 per calendar month.

For more information on this HRMC ruling please visit: http://www.hmrc.gov.uk/childcare/employees-guidance.htm

The Government have launched a new scheme called Tax Free Childcare to help support working parents with childcare costs. With Tax Free Childcare (TFC) parents have an online account, the account will be topped up by the Government with 20p for every 80p contribution from the parents, up to a maximum of £2000 per child per year.

For more information or to see if you are eligible to join TFC then please visit the Government TFC website www.childcarechoices.gov.uk