Child care vouchers

Child Vouchers

Childcarevouchers are a means of paying for childcare - they are one of the ways in which an employer can assist employees with childcare costs. The first £50.00 per week supplied via childcare vouchers is exempt from tax and National Insurance Contributions (NIC) for employees, so they can help you save money with your childcare fees.

How does the scheme work?

Your employer must get involved in the scheme, normally with the help of a childcare voucher company and will pay an administration fee for their service. The voucher company will either supply you directly with your vouchers or they will provide your employer with them which they will distribute to staff accordingly.

You sacrifice a specific amount of your salary and instead receive that amount in childcare vouchers. Childcare vouchers (up to a limit of £50.00 per week or £217.00 per month) are exempt from tax and National Insurance Contributions (NIC), so you will only pay tax and NIC on the reduced level of your salary.

This effectively saves you money on your childcare costs. For a low level tax-payer, this could save more than £800 per year, if you pay 40% tax, you could save £1000 per year.

Each employed parent can claim the exemptions, so a two parent family could save more than £1600 (lower tax bracket) or £2000 (higher tax bracket).

Further information can also be obtained from:

Accor Corporate Services

Tel. 0207 834 6666

www.accorservices.co.uk

Computershare Voucher Services

Tel. 0845 002 1111

www.computersharevoucherservices.com

Care4

Tel. 01442 829 400

www.grg.com

Childcare Options Ltd