Childcare vouchers
Employers can offer their workers access to
childcare vouchers. The employees will benefit from tax savings on
their childcare, and the employer benefits also.
The first £55 a week is free from both tax and National
Insurance Contributions if the qualifying conditions are met. Any
associated childcare voucher administration costs you pay are also
exempt.
The qualifying conditions are that:
- employees can only use the childcare vouchers to pay for
childcare that has been registered or approved (registered
childminders and nannies who belong to the Ofsted voluntary
register in England or the Childcare Approval Scheme Wales all
count)
- The child is a child or stepchild of the employee at whose
expense, either in full or in part, the child is maintained; or is
resident with the employee and for whom the employee has parental
responsibility. The child qualifies up to 1 September after their
15th birthday (or 1st September after their 16th birthday if they
are disabled); and
- A childcare voucher scheme should generally be available to all
employees where the scheme operates.