Parents urged to sign up for childcare vouchers before April

Parents interested in childcare vouchers are being urged to sign up before the end of the tax year.

From April, cuts and tax increases will be coming into force, especially so for high income earners.

Currently, all parents can sign up to a childcare voucher scheme and claim up to £55 of tax exempt income for each qualifying week.

This can add up to a saving of £1,195 during a year depending on circumstances.  

But parents signing up to the scheme from 06 April 2011 may miss out on the tax exemption available.

Spokesperson for the Co-operative Employee Benefits, Tracy Wilson said: “I would strongly advise any employees who fall in to the higher or additional tax rate brackets to sign up for the childcare voucher scheme now. Those who sign up before 6th April 2011 will not be affected by the changes and so can continue to benefit from the current exempt limits, as long as they remain continuously within the same scheme. ”