Tax Free Childcare

Introduction

The government has started inviting parents to apply for Tax-Free Childcare beginning with parents of the youngest children first.

Both tax-free childcare and childcare vouchers will run for a period of time following the launch of tax-free childcare to help with the transition whilst tax-free childcare is open up on a phased basis.  Parents will be able to register for childcare vouchers until April 2018.  Parents who already use the childcare voucher scheme will be able to continue to remain in the scheme for as long as their employer agrees to run the scheme.  The University of Oxford has agreed that it will continue to run the scheme for the foreseeable future.  If, however, you move employers after April 2018 then you will no longer be entitled to Employer-Supported Childcare via childcare vouchers.

For more information on tax-free child care please see: https://childcare-support.tax.service.gov.uk/par/app/eligibility

 

University of Oxford nursery fees salary sacrifice scheme (Workplace nursery scheme) 

Workplace nurseries are not impacted by this change to tax-free childcare.  Families who currently benefit from paying for a University nursery place via salary sacrifice will continue to be able to do so.  Eligible new parents offered a University place via Childcare Services will also be able to pay using the workplace nursery salary sacrifice scheme.  This will continue to realise considerable tax savings for parents. Payments for your University nursery provision will continue to be managed via the Childcare Services and your payroll team.  Tax-free Childcare will not be available for parents using the salary sacrifice scheme.

The University of Oxford’s workplace nursery agreement  covers all University nurseries (Bradmore Road, Jack Straws Lane , Mansion House, Woodstock Road and The Triangle), as well as the University-owned spaces with Bright Horizons, Oxford Montessori Schools, Co-operative Childcare and Childbase.  Under current legislation, the scheme only applies to nurseries where the employer takes part in "financing and managing the provision of the care”. Employees using other nurseries are therefore not eligible for the scheme.

The tax savings that parents receive via the workplace nursery scheme (salary sacrifice) will still, in the large majority of cases, result in greater tax savings than that provided by tax-free childcare.