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Your Frequently Asked Questions
Why offer Child Care Vouchers?
Offering a Child Care Voucher scheme is an effective and practical
way for your company to support working parents with their approved
child care costs. As an employer you make valuable savings against
the company NIC and your Employees save in their tax/NI contributions.
The vouchers are a simple way to help the organisation be more efficient
by lowering the costs associated with staff turnover, recruitment,
training and absenteeism.
What are the savings to be made?
Currently, the Government approves up to £55 of support for
child care, or £243 per month, (one or both parents) which is
exempt from employer's NIC, and tax and NIC for the employee. This
equates to around a 12.8% NIC cost saving for the employer(over £300
annually), and translates to an annual saving of £904 to £1,196
for the employee.
What is meant by "registered or approved child care"?
Registered care is inspected and has to meet certain standards.
Registered care providers in the whole of the UK comprise;
Nurseries and playgroups, childminders, after-school clubs and holiday
play-schemes. (nanny and sitter agencies are also registered in
Scotland)
Child care provided at home by grandparents or relatives/friends
is not eligible under the scheme.
How do we provide the exemption?
You can offer this exemption:
- in addition to your employees' existing salary
- as salary sacrifice where you employees give up an amount of salary
in exchange for you contributing to the childcare voucher
- as a combination of both
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