Childcare Vouchers and Tax Credits Childcare vouchers and Tax Credits

Participating in a childcare voucher scheme could affect the amount of tax credits a parent is entitled to, particularly if a parent gives up some of their salary to join an employer’s childcare scheme.

Parents cannot include the childcare costs met by an employer, either directly, or through childcare vouchers, on a tax credits claim.  This is because the tax and National Insurance exemptions amount of £55 week (£243 month) is considered a childcare benefit in kind.

If parents are not sure whether to take advantage of an employers childcare support scheme they should

visit or

or alternatively call the tax credits help line

GB: 0845 3003900 (text phone 0845 3003909)

NI:  0845 6032000  (text phone 0845 6076078)