Child Care vouchers are a flexible and tax-efficient way to cover child care costs for the employee.
Employees can agree to sacrifice [exchange] a proportion of their pre-tax salary for vouchers redeemable at any approved childcare provider. The employee makes tax and national insurance (NI) savings and employers can save on NI too.
The vouchers can be used in full or part payment for a wide range of child care options including a workplace nursery, external nursery, crèche, nanny, au pair and child minder, but for the employee to benefit from the tax and national insurance exemption, the chosen child care provider must be registered or approved.
Child care vouchers are often offered by employers as a standalone salary sacrifice benefit or as part of a wider benefits scheme. The childcare vouchers scheme must be offered to all employees for the tax savings to apply.
If you would like to consider offering this to your employees, please get in touch to find out more.