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Can I claim childcare expenses through my company?

Your company can provide childcare vouchers to you tax-free and you can claim this as an expense so long as the value of the childcare provided does not exceed £243 per month and the childcare is provided by a registered and approved childcare provider.

There are 2 ways to do this;

  • Your company can issue you childcare vouchers, normally administered via a third party childcare voucher provider, which are then used by yourself to pay the registered childcare provider
  • Your company can contract directly with the registered childcare provider

However, there is reduced childcare relief for higher earners. Those who are higher rate or additional rate taxpayers and who join employer supported childcare schemes providing childcare vouchers or directly contracted childcare on or after 6 April 2011, will have the exempt limits reduced to £124 per month for higher rate taxpayers and £97 per month for additional rate taxpayers. Please note that this applies to salary and benefits only, it excludes dividends.

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