Reducing childcare costs
Nursery Grants
The government awards funded nursery places for up to 15 hours a week for 3 terms (38 weeks) a year, for every child from the term after they turn 3 until they are 5 years old. The grants can be used in 5 sessions of 3 hours.
A maximum of two funded sessions of 3 hours each can be used per day. As our nursery is open 51 weeks a year the nursery funding will be divided across the 51 weeks of the year and then divided into 12 equal payments which will be deducted from your monthly fees. This helps you to know each monthly fee will be equal all year round, inclusive of the free grant.
Childcare Vouchers
Little Barn Owls Day Nursery accepts all recognised childcare vouchers as way of part payment of fees.
If your employer operates a childcare voucher scheme, you can save National Insurance and Income Tax. By registering for your employer's scheme, over £55 a week can be deducted from your salary and used to provide childcare vouchers for the same amount. This amount, which is deducted from your gross salary, is then paid directly from your salary, before National Insurance and Income Tax is deducted.
As a basic-rate tax payer, using childcare vouchers could save you up to £962 a year, whilst higher rate tax payers can save up to £1,196. Vouchers can be used by both parents, so families can save over £2,000 each year combined!
If you'd like more information on childcare vouchers, just give us a call on 01403 257778.
Child Tax Credit
Nine out of ten families with children qualify for tax credits from the government. Families with children can claim Child Tax Credit if their joint income is no more than £58,175 a year (up to £66,350 if you have a child under one).
The childcare part of Working Tax Credit is aimed at helping working parents with the cost of registered and approved childcare. This can pay up to 80% of childcare costs up to a limit of £175 per week if you are paying for one child and up to £300 per week for two or more children (meaning the most you can receive for the childcare element is £122.50 for one child or £210 for two or more children). Call 0845 300 3900 or go to www.taxcredits.inlandrevenue.gov.uk to order an information pack.
