Childcare Vouchers are a tax-free and National Insurance exempt scheme which provide significant savings for employees and save employers National Insurance contributions as well.
Childcare Vouchers are a salary sacrifice employee benefit which has been available since April 2005.
All eligible working parents with children aged up to 16 can request Childcare Vouchers, by exchanging or sacrificing part of their gross salary (up to £243 per month or £55 per week for basic rate tax payers and £124 per month
or £28 per week for higher rate tax payers) for the same amount of Childcare Vouchers.
This part of their salary is tax-free and exempt from National Insurance (NI) contributions, offering savings of up to £933* per parent, per year on their registered childcare costs.
This government initiative is open to both basic and higher rate tax-payers.
Childcare Vouchers can be used to pay for all types of registered childcare for children up to the age of 16. This includes childminders, nurseries, nannies, au pairs, crèches, playgroups, out of school clubs, holiday schemes, qualifying
childcare provided by schools, activity clubs andsummer camps
Further information is contained on: www.salary-exchange.co.uk