Hi Rachael86 , sorry for delay in getting a response to you. We have been in touch with the WAC team and the response is below:
A family cannot have a Tax-Free Childcare account at the same time as using salary sacrifice childcare vouchers (such as AFCVS), please see more info on Tax-Free Childcare - GOV.UK.
Therefore, parents must make an informed decision about which scheme best suits them and could use the childcare calculator (link is provided below) to work out which type of support is more beneficial for their family and/or seek independent financial advice if needed. Please note, if parents choose to leave the AFCVS, they will be unable re-join the scheme.
Should you choose to leave the Childcare Vouchers Scheme and join the WAC Scheme:
You must tell your employer within 90 days of applying for Tax-Free Childcare to stop your childcare vouchers or directly contracted childcare. If you have a partner who gets vouchers or directly contracted childcare, they’ll need to tell their employer to stop this within 90 days too. The employer will then stop the vouchers or directly contracted childcare. You may have to give HMRC evidence of leaving the childcare voucher scheme. For example, a copy of the letter telling your employer you’re leaving the childcare voucher scheme.
Important to note:
- Vouchers accumulated before joining TFC could be used towards childcare (including holiday care) for all children in the family, or for younger children who are not eligible to join the WAC yet.
- Parents should check with their voucher company whether there is a limit to the time the vouchers must be used.
- Refunds for the purchased vouchers are not possible under salary sacrifice contracts. Once your pay has been exchanged for a childcare voucher under contract, it is generally not possible to reverse it back through the payroll. In circumstances where a refund is allowed, the refund would be returned to your employer and paid to you through payroll and would be subject to tax and national insurance in the normal way. Parents should check what the process is with their voucher company.
Kind regards, Jim RN FPS Duty Moderator
