Childcare Vouchers is a scheme some employers offer to help working parents save on registered childcare costs. Childcare vouchers are not means tested and are available to all working parents whose companies operate childcare voucher schemes. The vouchers can be used to pay for all types of registered childcare including registered childminders, day nurseries, crèches, playgroups, out of school hours clubs, holiday play schemes and home childcarers approved under the new Home Childcarer Approval Scheme.
Your entitlement to tax credits, however, is likely to be affected. This is because you can only claim help through the childcare element of Working Tax Credit on childcare costs that you meet yourself. If your employer meets any of your childcare costs, even if your pay has reduced in return (a salary sacrifice) these costs do not count.