WHAT IS THE CHILDCARE VOUCHER SCHEME? IN INDIA

The Childcare Voucher Scheme was a successful plan that allowed employed parents an opportunity to forgo a portion of their pre-tax salary so they could register for paid childcare. The scheme meant that the parents could save on their Tax and National Insurance (nearly £933 per parent each year). Here’s how the scheme works The parents have to sacrifice a part of their salary for the Childcare Vouchers to work. However, the employee could sign a salary sacrifice arrangement that reduces their entitlement to cash payments in exchange for non-cash benefits. The Childcare Voucher Scheme would require employees to part with a portion of their pay and get Childcare Vouchers in return. If they want to benefit from the savings, the employees must use Childcare Vouchers for registered childcare payments only. The maximum amount that each parent can sacrifice from their salary into the Childcare Voucher account is a maximum of £243.