Childcare vouchers - employers charging admin fee

Abbeyalex10

Hi

Me and my husband both get the maximum amount of childcare vouchers each month from our salaries. However, my husband's employer also charges him an admin fee of nearly £30 which is what they say the provider charges them. Yet I've seen everywhere that the employer gets benefits from providing a scheme. Are this employer allowed to do this? Anyone know? Thank you

purdyoaten

Sounds mean to me. Generally the savings that the employer makes in NIC contributions outweighs the charges levied by the provider - usually by a small amount. This is somewhat the whole point of the scheme.

If you earn more than £893 per month gross (and are not contracted out), the employer makes no loss. The higher the salary, the larger the saving.

dano17439

Our provider (EdenRed does charge an admin fee plus VAT for the amount of vouchers we buy. However as a company we swallow that. Agree with the above that is extremely mean of your husbands employer

chrismac1

What does your employment contract say about this sort of thing?