Families who are in danger of paying higher-rate tax should apply for childcare vouchers before 5 April 2011.
This year everyone receives tax relief at their highest rate on up to £55 of childcare a week. The relief will be restricted for higher earners who join the scheme after 5 April. New joiners after 6 April, paying 40 per cent tax, will be entitled to only £28 a week tax-free.
Basic-rate taxpayers and existing users of childcare vouchers will continue to receive £55 a week at their full tax rate.
