Recent legislation means that Childcare Vouchers are becoming the preferred way of paying and part paying for childcare costs. If you accept vouchers (up to £243 per month) instead of the equivalent salary you will save tax and NI on the voucher value.

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Currently, with the maximum entitlement of £55 in vouchers per week (£243 per month), if you are a basic rate taxpayer you will save £962 per year and higher rate taxpayers will save £1,195 per year. Both working parents are eligible to receive Childcare Vouchers. If you and your partner are both working, jointly you could save up to £2,390 per year.