Some employers offer childcare voucher schemes which allow parents to pay for childcare out of their pre-tax income - with a potential saving of more than £1,000 each year.

How does it work?

Most schemes work by salary sacrifice - each parent is allowed a maximum of £243 per month in childcare vouchers which they do not have to pay tax or National Insurance Contributions on. How many children you have makes no difference to the maximum allowance.

How do I qualify?

• Your employer must operate a childcare voucher scheme in order for you to participate. If they don't, it's worth asking. Employers don't pay National Insurance Contributions on vouchers, so it could save them money too.
• Your child qualifies up to 1 September following their 15th birthday, or if the child is disabled, up to 1 September following their 16th birthday.
• The childcare must be registered or approved. What is registered childcare?

Will this affect any claim for help with childcare costs?

You can't claim help for childcare costs that you pay with childcare vouchers, or that your employer pays directly.

If you're not sure whether you are better off using the vouchers, or claiming for help with childcare costs through tax credits, try using the HMRC calculator, which should give you a rough idea.