Tax Credits

Nine out of ten families with children are entitled to claim a tax rebate to help them fund childcare. This can be up to a maximum of 70p for every £1 you pay out in childcare costs. There is a limit of £175 per week for one child and £300 for two or more. This means the most you can get in your childcare element is £122.50 if you have one child or £210 if you have two or more children.

Tax and National Insurance exemptions (Otherwise known as Salary Sacrifice/ Childcare Vouchers)

The first £56 a week of the cost of approved childcare will be exempt from tax and National Insurance. This is available to each employed parent. Thus most families will benefit from £112 a week exemption. Examples have been included in our fee calculations.

In order to benefit from these exemptions, your employer can make use of one of the existing voucher services (ask for details).

Parents may be able to benefit from either the Tax Credits or Tax and National Insurance exemptions, thus reducing childcare costs still further.

Local Authority Grants.

These grants are available for all three year olds and some two year olds. Further details can be obtained from your local authority and your Prepcare nursery. The current effect of these grants is shown on the fee sheets, which is available upon request. Children are entitled to claim up to a maximum of 15 hours per week government funding, during particular sessions these can be free. These sessions are available in a flexible manner and at no additional cost. Anything additional, such as  certain extra activities, will be charged in accordance with our printed literature.

For further information on Tax Credits contact 0845 300 3900 or www.taxcredits.inlandrevenue.gov.uk

For further information on the Tax and National Insurance exemptions for childcare, obtain Employers Help Book El8 (2005) or contact www.inlandrevenue.gov.uk/childcare or your local Inland Revenue office.