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Childcare vouchers versus tax free childcare
If you are one of the households that still has access to the childcare voucher scheme (which closed to new applicants in 2018), you may be wondering if you should switch to tax free childcare. However, you need to think carefully about this as once you've switched, you won't be able to access vouchers again.
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The higher your costs, the more likely TFC is better for you
Because tax free childcare (TFC) is based on number of children, rather than the number of earners, many people with more than one child, or a pre-school child, will be better off with tax free childcare. However, once funded hours kick in, this may change as with lower costs, the better percentage savings from childcare vouchers may win out.
Try to think of your costs in the future too
It may be that TFC saves you some money while your child(ren) are little, but if you are likely to be paying a lot for wrap-around childcare in the future, childcare vouchers may be better. Play around with different scenarios and compare the savings that you will experience.
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