Childcare Vouchers

Dalahera

Today I received a letter from my employer informing me that the Government is now charging them to administer the Childcare voucher scheme and therefore they will no longer be providing this. Has anyone got information on this? I would be grateful if you could let me know or comment on your website about such changes.

suelees1

I'vwe not heard of this (yet anyway). What I do know that a lot of companies weren't happy to do it anyway as the govt didn't pay them to administer it.

As far as I'm concerned it's good practice and employers shouldn't want payment for this. They save money anyway by not having to pay so much NI as you've sacrificed some of your salary for the vouchers.

suelees1

I've just found this on the HMRC website. Perhaps your bosses have now got one of the companies in paragraph 1 to operate the vouchers.

I'm still suprised as I would have thought the cost of this would be much less than what they'd be saving on tax and NI anyway.

You have two options when using childcare vouchers:

1 Voucher provider companies can operate childcare
voucher schemes on behalf of employers. They will
charge an administration fee for the service.

2 You can produce and administer childcare vouchers
yourself as long as you make sure the conditions for tax
and NICs exemption are met and you keep records to
support your scheme.