The current Childcare Voucher scheme which enables working parents to fund childcare through their pre-taxed salary with weekly vouchers worth up to £55 was due to close to new entrants in April this year.

An alternative government-backed tax-free childcare scheme, set to replace the voucher system, is already operational. In this scheme, working parents – including those with self-employed status – who are earning more than £120 per week but less than £100,000 a year will receive government top-up contributions to help meet up to £10,000 a year of childcare costs for every child under 12 years.

For every 80p contributed by parents, the government will add 20p, amounting to an extra £2,000 per child or £4,000 if the child is disabled.

The Government has now confirmed that the original tax free voucher scheme will now not close for new entrants in April.

This shall be extended to October 2018.

Employers need to make sure that employees are aware of their options and the revised deadlines.