About Childcare Vouchers
Childcare Vouchers are a simple, flexible and tax efficient way for employers to help their employees with their childcare costs.
The scheme was introduced by the Government in April 2005 to help support working parents and operates on a salary sacrifice whereby an employee chooses to exchange part of their salary to cover the cost of childcare for children up to the age of 16.
Companies can give employees up to £2,916 per year tax free in childcare vouchers, saving parents up to£933 each in Tax and National Insurance. Companies save their National Insurance contributions - up to £402 per employee per year.
Benefits to Employer
- Savings on Employer NI Contributions - up to £402 per employee per annum
- Increases staff morale and employee engagement
- Helps to recruit staff whilst demonstrating commitment to your staff
- Improves staff retention - helps to make it worthwhile to return to work
- Simple and flexible to set up - fully managed scheme or self-administration options available
The scheme is self-financing
Benefits to Employee
- Save up to £933 per annum in Tax and National Insurance
- Double your savings if both parents join the Childcare Voucher Scheme - saving up to £1866 per annum
- Makes quality childcare more affordable
- Assists in managing family finances and reduces childcare costs
- Freedom to choose where and when you use the vouchers.
- Childcare vouchers can be for as little as £10 per month and can be banked until required.
- Childcare Voucherscan be used for child-minders, nannies, day nurseries, play schemes, pre-school, before and after school clubs , boarding fees, educational centers or holiday clubs
- Certain holiday club discounts and promotions available through Gemelli
- The scheme must be made available to all employees
- No minimum numbers required
- Childcare Voucherscan only be used with Registered or Approved Childcare Providers
- Salary after salary sacrifice deductions must not fall below the Minimum Wage.