news

Continue with care-4 when applying for 30 hours free childcare

02 Aug 2019

We have been made aware that when parents apply for 30 hours free childcare on https://www.childcarechoices.gov.uk, some are misunderstanding the application process and, as a result, cancelling their participation in care-4 in error. 

Please note that if you are eligible to receive the additional 30 hours free childcare for your child, but you would still like to participate in care-4 and save funds on your childcare costs, you CAN continue do so.  You should not cancel your childcare vouchers through care-4 or apply for Tax Free Childcare on the Government website.  

If you do cancel your payment into care-4 and join Tax Free Childcare, you will NOT be able to rejoin the care-4 scheme and benefit from these additional savings in future.

Continue care-4 alongside 30 hours free

21 Mar 2019

If your child is eligible for 30 hours free childcare, please note that when applying for this on Childcare Choices, you do not need to also join tax free childcare.  You can continue to stay within care-4 and receive the benefit of care-4 alongide the 30 hours free. 

Parents can continue care-4 alongside 30 hours free childcare

21 Mar 2019

If you have parents with children eligible for 30 hours free childcare, please note that they can apply for this through the Governments Childcare Choices, but they do not need to join Tax Free Childcare at the same time.  They can continue to stay with care-4 and enjoy the savings through the scheme, alongside the 30 hours free. 

care-4 is now closed to new joiners

04 Oct 2018

We are disappointed that the government has closed childcare voucher schemes to new entrants from today.  As a result, care-4 has closed to new joiners.
 
care-4, has helped over 200,000 parents for more than 15 years, to save up to £933 a year. Employers have also benefited from using care-4, enabling them to offer their employees a valuable benefit to support their family friendly policies, whist making NIC savings of up to £402 per person per year.
 
Whilst new entrants can no longer join the scheme, we would  like to reassure existing clients and participants using care-4, that they can continue to benefit from the scheme until their youngest child is 15 or they are no longer eligible. 
 
At care-4, we will continue to provide a high level of service to all participants and the good news is that if you are an employer looking to change your current scheme, your existing participants can experience our great service after 4th October 2018.
 

care-4 is closed to new joiners

04 Oct 2018

We are disappointed that the government has closed childcare voucher schemes to new entrants from today.  As a result, care-4 has closed to new joiners.
 
care-4, has helped over 200,000 parents for more than 15 years, to save up to £933 a year. Employers have also benefited from using care-4, enabling them to offer their employees a valuable benefit to support their family friendly policies.
 
Whilst new entrants can no longer join the scheme, we would  like to reassure existing participants using care-4, that they can continue to benefit from the scheme until their youngest child is 15 or they are no longer eligible. 
 
At care-4, we will continue to provide a high level of service to all participants and the good news is that if your employer would like to move over to care-4, you and your colleagues that are existing childcare voucher recipients can continue to transfer and experience our great service after 4th October 2018.
 

Clarification on new joiner deadline for your employees

16 Jul 2018

In March this year, the Government provided an extension to the end date for new joiners to care-4 of 4th October 2018.  You may have seen that they recently updated their website "Help paying for Childcare" with 
the following:
 “You can keep getting vouchers if you’ve joined a scheme and your wages have been adjusted before the scheme closes in October 2018”
 
We requested further clarification from the Government’s tax free childcare team, to ensure that you are aware of the exact payroll requirements for your employees.   They confirmed that to be a participant in the scheme, the parent must have been provided with funds in their care-4 account by midnight on 4th October 2018. 

Employees that have applied for care-4 in their next pay, but have not received the funds into their care-4 account by midnight on 4th October 2018 will not qualify for the tax and national insurance exemptions.

If your October pay is later in the month of October, please ensure that employees are aware that they must have registered ahead of their September payroll cut off, so that payment can be received into care-4 accounts in September pay.

It is vital that employees who want to join the care-4 scheme allow plenty of time ahead of the deadline to do so.  

Hurry new joiners - funds must be credited by 4/10/18 to qualify

16 Jul 2018

Earlier this year, the Government confirmed that care-4 could be extended to new joiners for a further 6 months to 4th October 2018. 

As we approach this date, please note that you must have registered and had your first funds taken from your pay into your care-4 account by 4th October 2018.  If your October pay is later in the month, ensure that you have completed your registration ahead of your September payroll cut off, so that payment can be received into your care-4 account in September pay.

It is vital that you allow plenty of time ahead of the 4th October deadline to join the scheme through your employer, to benefit from the tax and national insurance exemptions on your childcare costs.  .

If you have joined and are a participant of care-4 before the deadline, you can continue to save through the scheme for  your childcare arrangements until either your child reaches 16, you are no longer eligible, or you join tax free childcare.  

Hurry join care-4 before 4th October 2018

20 Apr 2018

The Government has now made the Income Tax (Limited Exemptions for Qualifying Childcare Vouchers and other Childcare) (Relevant Day) Regulations 2018 (SI 2018/462). These regulations set 4th October 2018 as the new date when care-4, as part of ESC, will close to new entrants. 

At that time, if you are already using care-4, you will be able to continue to do so for as long as you remain with your current employer, or you do not cease your salary sacrifice for more than 12 months and do not join TFC.
 
If you are an employee that would be better off with care-4, join now or before the 4th October 2018 in order to make savings through the scheme. 
 
Anyone participating in the scheme at that time can continue until their children are 16.  You can also add further children after this date and use care-4 alongside the 30 hours free childcare offer that the Government provides.

Don't delay, join care-4 today!
 

Legislation has been passed, parents must join care-4 by 4th October 2018

20 Apr 2018

With the introduction of TFC, the Government had planned to grandfather the employer supported childcare (ESC) schemes like care-4 for all parents that were in the scheme by April 2018.  To reflect the concerns about the timing of the closure of ESC, this date was recently extended for 6 months by Damian Hinds, Education Secretary.
 
The Government has now made the Income Tax (Limited Exemptions for Qualifying Childcare Vouchers and other Childcare) (Relevant Day) Regulations 2018 (SI 2018/462). These regulations set 4th October 2018 as the date when care-4, as part of ESC, will close to new entrants. 

After this date, parents who are already using care-4 can continue to do so for as long as they remain with you as their employer, do not cease their salary sacrifice for more than 12 months and do not join TFC.
  
Anyone participating in the scheme at that time can continue to save through the scheme until their children are 16.  They can also add further children after this date and use care-4 alongside the 30 hours free childcare offer that the Government provides.

Detailed below are some faqs relating to the 6 month extension.
 
An employee joined TFC in March, as the deadline had passed for care-4.  Can they leave TFC and join care-4?
 
No, any parents who have joined TFC will not be able to join care-4, unless they have also moved to you as a new employer.
 
An employee joined TFC, but prefers the service provided by care-4, can they re-join care-4?
 
If the employee has joined TFC and has formally ceased care-4 and stopped their salary sacrifice within the first 90 days of joining TFC, they will not be able to re-join care-4. 
 
Can an employee join care-4 if their 1st child is due after 4th October 2018?
 
Employees must be in care-4 and have received a payment by 4th October 2018 to be a participant in the scheme.  If their first child is due after this date, they will not be eligible, however if they are already a parent of an eligible child, they can join and start saving through the scheme.

care-4 is now available to new joiners until 6th October 2018

15 Mar 2018

On 13th March 2018, Damian Hinds, Education Secretary announced that Employer Supported Childcare schemes, such as the care-4 scheme offered to you by us will be extended to new joiners until 6th October 2018.

This means that care-4 will no longer be closed to new joiners from 5th April 2018 and any employees that wish to join can continue to do so until 6th October 2018.

Anyone participating in the scheme at that time can continue to save through the scheme until their children are 16.  You can use this scheme alongside the 30 hours free childcare offer that the Government provides.

The Governments childcare choices site www.childcarechoices.gov.uk has been updated to reflect the new end date for new joiners to childcare vouchers and also sets out the other options available to working parents, including Tax Free Childcare.  This site includes a calculator to work out which scheme provides the best savings for you as a family.  

Please note that you will be unable to join care-4 if you are already participating in Tax Free Childcare.

care-4 is now available to new joiners until 6th October 2018

15 Mar 2018

On 13th March 2018, Damian Hinds, Education Secretary announced that Employer Supported Childcare schemes, such as our care-4 scheme can be offered to new joiners until 6th October 2018.

This means that care-4 will no longer be closed to new Clients wishing to offer a childcare voucher scheme to their employees or new parents wishing to join an existing scheme from 5th April 2018 and any Clients or employees that wish to join can continue to do so until 6th October 2018.

Anyone participating in the scheme at the end date for new entrants can continue to save through the scheme until their children are 16.  

The Governments childcare choices site www.childcarechoices.gov.uk has been updated to reflect the new end date for new joiners to childcare vouchers and also sets out the other options available to working parents, including Tax Free Childcare and 30 hours free.  This site includes a calculator to work out which scheme provides the best savings for each employee.  

Please note that employees will be unable to join care-4 if they are already participating in Tax Free Childcare.

Hurry - time is running out to join care-4

14 Feb 2018

Tax Free Childcare has been extended to parents with children up to age 12 today.

However, there is still time to join care-4 if your savings are better through your employers scheme. Hurry as you need to have registered and had your first funds taken from your pay to care-4 by 5th April 2018.

You can join if you are -
  • a) Subject to uk tax legislation
  • b) The Parent or Legal Guardian (of a physical child that has been born)
  • c) Paying or wishing to pay regulated or approved childcare
  • d) Not in Tax Free Childcare

care-4 participants can continue to benefit from care-4 through the grandfathered arrangements until their child is 16 or they are no longer eligible, provided that they do not have a break in payments from salary of 52 weeks or more, and they have not joined Tax Free Childcare.They can also add further children to your scheme.

You can visit www.childcarechoices.gov.uk to find out which scheme provides the best savings for you.  Please make sure you consider your future salary and childcare costs.  You cannot re-join care-4 if you have left and joined TFC, even if you try to do so before 5th April 2018 and you find out that you are now no longer eligible for TFC.

Limited Time for employees to join care-4 - payment by 5th April 2018

06 Feb 2018

The Parliamentary Debate on 15th January 2018 did not make any changes to the deadline for new joiners to care-4 and whilst there is an ongoing Treasury Select Committee Session it is essential that all employees that can join care-4 are made aware of this before the end date of April 2018.
 
Timetable
The current timetable for roll out as confirmed by the Tax Free Childcare team are as follows.
Item
 
Child Age Date
Tax Free Childcare launched
 
Up to age 4 From 21st April 2017
30 hours free childcare Children born after September 2012 From September 2017
Tax Free Childcare rolled out
 
Up to age 6 From 24th November 2017
Tax Free Childcare rolled out
 
Up to age 9 From 15th January 2018
Plans for TFC to be rolled out
 
Up to age 12 From 14th February  2018
New joiners to care-4 first Salary Sacrifice paid Up to age 16 Up to 5th April 2018
care-4 for existing participants
 
Up to age 16 Continues until payments cease for 52+ weeks or no longer eligible
Close to new joiners  
 
Salary sacrifice paid or requests made 5th April 2018 onwards

Clarification of Deadline to join care-4
There has been some confusion from Clients and Parents in respect of the deadline to join care-4 or Employer Supported Childcare Schemes. Whilst the Government have announced that 5th April 2018 is the deadline for employees to join care-4, they have also confirmed that this is the deadline that employees must have received their first payment through the scheme by.  Therefore, please be aware that new joiners to the scheme must have had a payment in March 2018 pay or as a minimum by 5th April 2018 in order to be able to benefit from the grandfathered care-4 scheme.

For Clients using flexible benefits providers, a cut off date is required to ensure that funds are received in  March pay will need to be included in the flex enrolment process, after which the enrolment should close for new joiners..  
.
Eligibility to join care-4
Employees can only select the benefit if they are eligible to do so before the deadline.  Eligibility is as follows:-
  • Employees subject to uk tax legislation
  • Parent or Legal Guardian (of a physical child that has been born)
  • Paying or wishing to pay regulated or approved childcare

Existing Participant Arrangements
Any employees that have joined the scheme and received payment  by 5th April 2018 or have had a payment in the last 52 weeks will be considered a participant, unless they:-
a)have joined Tax Free Childcare
b)are no longer eligible for care-4 (i.e. they have changed employer, their children are over 16)
c)have a break in payments from salary of 52 weeks +
Please note that employees cannot re-join care-4 if they have left and joined TFC, even if they try before 5th April 2018 and they are now no longer eligible for TFC.

30 hours free childcare
30 hours free childcare is available to children born after September 2012.  It is perfectly acceptable for families to use care-4 alongside 30 hours free childcare. 

Problems when reconfirming eligibility for 30 hours free childcare

15 Dec 2017

Parents that are using care-4 or employer supported childcare vouchers, have reported problems when reconfirming their eligibility for 30 hours free childcare:-
 
While it is perfectly acceptable for families to use care-4 alongside 30 hours free childcare, the HMRC Childcare Service incorrectly indicates that the household must stop using childcare vouchers before continuing to be eligible for the 30 hours free childcare. This is not the case and in order to ensure that you do not lose out on the support that your are entitled, HMRC have confirmed that you should use the following work around:- 
  1. If you are reconfirming details and asked about childcare vouchers you should initially indicate ‘Yes’ you have stopped using Childcare Vouchers.
  2.  
  3. The next screen shows a summary of your details. You can then edit and correct your details in this screen to indicate that you are continuing to use Childcare vouchers.
 
This will then allow the reconfirmation of eligibility for 30 hours free childcare alongside continuing usage of your care-4 benefit.
 

Autumn Statement 2017

06 Dec 2017

The Chancellor delivered his Autumn Statement on 22nd November outlining the Government's spending commitments. 

Tax Free Childcare
There was no further information about roll out plans for Tax Free Childcare, however, a few days earlier, the Tax Free Childcare team advised that the scheme would be extended to parents with children up to age 6 from 24th November 2017. The Government currently plan to extend to parents with children up to age 12 by 31st March 2018.

The Office for Budget Responsibility provided actual take up of TFC in their accompanying budget documentation.  Take up is currently much less than expected at 30,000.

The average family spend on childcare reported by the Government is currently £3,276 per year.  This provides savings of £655 per year with Tax Free Childcare and £933 as a basic rate tax payer on care-4.  

You can register for care-4 today and continue to join care-4 until April 2018.  Provided that you have funds taken from your pay and paid into your care-4 account by end of March. you can continue to receive tax and NI savings as a care-4 participant through the grandfathered scheme until your children are no longer eligible.

National Minimum Wage/National Living Wage
The Chancellor announced that the NLW will rise from £7.50 to £7.83 per hour from April 2018.  In addition, the NMW rates will increase for 21 to 24 year olds from £7.05 to £7.38 per hour.

Personal Allowance
The Personal Allowance will increase to £11,850 from April 2018, with the higher rate threshold increasing to £46,350.

Autumn Statement 2017

06 Dec 2017

The Chancellor delivered his Autumn Statement on 22nd November outlining the Government's spending commitments. 

Tax Free Childcare
There was no further information about roll out plans for Tax Free Childcare, however, a few days earlier, the Tax Free Childcare team advised that the scheme would be extended to parents with children up to age 6 from 24th November 2017. The Government currently plan to extend to parents with children up to age 12 by 31st March 2018.

The Office for Budget Responsibility provided actual take up of TFC in their accompanying budget documentation.  Take up is currently much less than expected at 30,000.

The average family spend on childcare reported by the Government is currently £3,276 per year.  This provides savings of £655 per year with Tax Free Childcare and £933 as a basic rate tax payer on care-4.  

Employees can register for care-4 today and continue to join care-4 until April 2018.  Provided that they have funds taken from their pay and paid into their care-4 account by end of March. employees can continue to receive tax and NI savings as a care-4 participant through the grandfathered scheme until their children are no longer eligible.

National Minimum Wage/National Living Wage
The Chancellor announced that the NLW will rise from £7.50 to £7.83 per hour from April 2018.  In addition, the NMW rates will increase for 21 to 24 year olds from £7.05 to £7.38 per hour.

Personal Allowance
The Personal Allowance will increase to £11,850 from April 2018, with the higher rate threshold increasing to £46,350.

Tax Free Childcare Update

18 Jul 2017

Here is some further clarification on the Tax Free Childcare (TFC) scheme, its launch and the impact on you: 
 
Timing of roll-out to age 4 and over

There is still a plan to roll out to parents with children up to age 12 by the end of the year, but as yet we’ve seen no further detail on when it will extend past the current eligibility of up to age 4. As soon as we know more, we’ll share the information with you.

Reconfirmation of TFC eligibility

If you register for TFC, you must re-confirm your eligibility every 90 days to continue to receive the government subsidy. 

If you are a care-4 participant, you must request a cessation through your care-4 account, or if you are part of a flex scheme you’ll need to tell your employer that you wish to stop using it. This request must take place through your payroll, and your salary sacrifice must have stopped within the 90-day period. 

If you join TFC and during the 90-day period you decide that you don’t want to leave care-4, you can stop TFC and continue with care-4, as long as you haven’t already requested a cessation through care-4 or your employer.

Maternity leave

care-4 participants who go on maternity leave after April 2018 can stop salary sacrifice for up to 12 months and still remain in the care-4 scheme and save on childcare costs, as long as they or their partner do not join TFC.  

If you join TFC and go on maternity leave, you will continue to be eligible for TFC regardless of whether your leave is paid or unpaid. You cannot hold a childcare account for the child that you are on maternity leave for until you return to work. 

If you opt to phase your return to work, you will not be able to reconfirm your eligibility and save with TFC until your salary reaches over £120 per week.

Tax Free Childcare Update

18 Jul 2017

Here is some further clarification on the Tax Free Childcare (TFC) scheme, its launch and the impact on employees that are using care-4 which you may find useful: 

Timing of roll-out to age 4 and over

There is still a plan to roll out to parents with children up to age 12 by the end of the year, but as yet we’ve seen no further detail on when it will extend past the current eligibility of up to age 4. As soon as we know more, we’ll share the information with you.

Reconfirmation of TFC eligibility

If you register for TFC, parents must re-confirm eligibility every 90 days to continue to receive the government subsidy. 

care-4 participants, must request a cessation through their care-4 account or if you use a flex scheme they will need to cease through that to ensure they have reported this cessation to you.  This request must take place through payroll, and the salary sacrifice must have stopped within the 90-day period. 

If employees join TFC and during the 90-day period decide that they don’t want to leave care-4, they can stop TFC and continue with care-4, as long as they haven’t already requested a cessation through care-4 or you.

Maternity leave

care-4 participants who go on maternity leave after April 2018 can stop salary sacrifice for up to 12 months and still remain in the care-4 scheme and save on childcare costs, as long as they or their partner do not join TFC.  

If they join TFC and go on maternity leave, they will continue to be eligible for TFC regardless of whether their leave is paid or unpaid. Parents cannot hold a childcare account for the child that they are on maternity leave for until they return to work. 

If the parent opts to phase a return to work, they will not be able to reconfirm their eligibility and save with TFC until their salary reaches over £120 per week.

Tax Free Childcare Launched

26 Apr 2017

You may be aware that the government planned to introduce Tax Free Childcare on 28th April.  However, they have now published a news story confirming the launch of TFC, a week earlier than planned. 

There has also been a change to the government’s planned roll out to parents, with an announcement that those of you with children aged 4 or younger are able to apply for TFC first.  The full roll out is planned before the end of the year and we will advise you of further timings as soon as they are known. 

The government has published operational guidance on the 30-hours childcare entitlement available from September.  This guidance includes information on how parents will register for TFC.

Childcare Choices

The Childcare Choices website provides a calculator for you to compare the childcare offers available and check whether you will be better off with care-4 childcare vouchers, TFC or another government provided scheme.
  
If you have already accessed this site and pre-registered for email alerts, it is likely that you will receive an alert shortly if they are a parent of a child aged under 4 at 31st August 2017. 

Please note

If you register for TFC, you will be required to leave care-4.

Households must choose the scheme that is best for them and cannot participate in both schemes at the same time.

Parents using TFC will be required to re-confirm their eligibility every 90 days and must have left care-4 before the next eligibility period. 

Where parents are eligible for TFC and then one parent’s salary increases to £100,000 or more during the year, will need to confirm their ineligibility for TFC in the next 90 day period.

The government have now confirmed that parents who leave employer supported childcare schemes such as care-4 to join TFC, will not be able to leave TFC and re-join care-4 regardless of whether this happens before April 2018

Tax Free Childcare Launched

26 Apr 2017

You may be aware that the government planned to introduce their TFC scheme on 28th April.  However, they have now published a news story confirming the launch of TFC, a week earlier than planned. 

This launch date may have been brought forward due to purdah commencing before their original launch date, following the Prime Minister’s announcement of a general election on 8th June.  We believe that the government are not able to promote TFC during purdah through its planned communications, however it may be used as part of election campaigning.

There has also been a change to the government’s planned roll out to parents, with an announcement that parents with children aged 4 or younger are able to apply for TFC first.  The full roll out is planned before the end of the year and we will advise you of further timings as soon as they are known. 

Alongside this announcement, the government has published operational guidance on the 30-hours childcare entitlement available from September.  This guidance includes information on how parents will register for TFC.

Childcare Choices

As mentioned, previously, the Childcare Choices website provides a calculator for parents to compare the childcare offers available and check whether they will be better off with care-4 childcare vouchers, TFC or another government provided scheme.
  
If parents have already accessed this site and pre-registered for email alerts, it is likely that they will receive an alert shortly if they are a parent of a child aged under 4 at 31st August 2017. 

Please note

Parents registering for TFC will be required to leave employer supported childcare

Households must choose the scheme that is best for them and cannot participate in both schemes at the same time.

Parents will be required to re-confirm their eligibility every 90 days and must have left care-4 before the next eligibility period. 

Where parents are eligible for TFC and then one parent’s salary increases to £100,000 or more during the year, will need to confirm their ineligibility for TFC in the next 90 day period.

The government have now confirmed that parents who leave employer supported childcare schemes such as care-4 to join TFC, will not be able to leave TFC and re-join care-4 regardless of whether this happens before April 2018.
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USEFUL THINGS TO NOTE...

Should I continue paying into my account if I'm now spending less on childcare?
If you are likely to require childcare in the future, we recommend that you continue with your salary reductions (remembering that you can choose to reduce the value temporarily if required).
 
Can I reduce my monthly salary deduction temporarily?
Yes – this can be done either via your online care-4 account or, if your employer operates a Flexible Benefits scheme, through your Benefits Provider platform. The value can subsequently be increased as and when required.

If I leave the scheme can I re-join?
Yes, you can choose to temporarily leave the scheme (i.e. pause your salary reductions) but please be aware that in line with new Tax Free Childcare regulations, you must ensure that you restart reductions within 12 months - if you fail to do so then unfortunately you will be unable to re-join the scheme.
  
Are the funds in my account safe?
Yes. All funds received from our clients in respect of childcare payments are deposited and held in specifically designated bank accounts which are used solely for the purpose of handling care-4 client funds. The operational procedures we have in place illustrate that all such funds are client monies. 
 
Should you require further assistance please contact us either via email at: info@care-4.co.uk or by calling our helpline on 0344 800 1444.