Armed Forces Childcare Vouchers

For all you serving parents out there, I draw your attention to the UK Armed Forces Childcare Voucher Scheme, something that seems to have been brought in under the radar, in BFG at least...

Basically, if you have kids and you spend money on childcare (has to be approved and registered, eg; nanny, nursery, childminder) - you can apply for vouchers in place of your salary, thus saving the tax and NI that you would have paid.

Here's a quote from the leaflet:

Childcare vouchers are a government initiative designed to help working parents pay for childcare. You can convert part of your salary into vouchers – up to £243 per month –saving the tax and National Insurance you would normally pay on that amount. The vouchers are part of your pay so you will receive your childcare vouchers in line with your monthly pay. You can choose to receive paper vouchers at your correspondence address, or e-vouchers, which are by far the most popular choice and allow you to go online and make direct payments into your carer’s bank account.

I found out about from an e-mail that Mrs Adjt received from another wife - it had been forwarded massively. The MoD should be proud of the PR effort they put into the launch of the scheme (none of my mates had even heard of it) and equally proud of the excellent levels of planning and forethought they have put into getting it up and running (strangely enough, most of BFG has been caught with its pants down and if you are lucky enough to be posted here, you, er, can't use the vouchers, er, because, er, well no one is ready to accept them yet... but we'll be able to back date them)

Joking apart, once people get their act together, it will save quite a bit of cash.

Hope people found it useful - and congratulations to our lords and masters for letting everyone know about it...

If it's any concilation; it's been on the Defence Intranet for anyone who can access it.

I'm grumpy because the Civil Service isn't starting the scheme until the summer and the vouchers have been available for over a year.
Since 2005, I think. Which is when I complained as the RAF were getting it and we weren't. JPA was the excuse for holding its introduction up.

To saving money - a private soldier using all his allowance, has the ability to save from the taxman the equivalent of more than a months wages over the course of a year.

It is a very good deal for anyone who needs to pay childcare.
I have a question in relation to the vouchers if anyone has an informed answer

As the pay for the voucher is deducted 'at source' ie not paid to you and therefore not taxed/NI'd; does this have any affect on the final pension I would receive, or

as stated in the Sodexho literature, does the MOD accept that deductions for childcare vouchers count as salary for pension purposes?

Thanks in advance - if I get an answer from my RAO I will post the reply.

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