Tel: 0845 601 6020
Parents area
FAQs relating to Child care and childcare vouchers
The fastest way to answer your specific questions is by calling us on 0845 601 6020 - but here are some things you may want to know now:
Quick links:
Why offer Childcare Vouchers? What are the savings to be made? What is meant by 'registered or Approved' childcare? How will I get exemption? How much administration is needed? Can everyone benefit from the scheme? Is the offer company wide? Who can claim the support and is it per child?
Why offer Chilcare Vouchers?
Our Childcare voucher scheme is a valuable staff benefit, it saves the company money, and saves you Tax and National Insurance Contributions (NICs). It enables your employer to give practical support towards your childcare arrangements, and shows that the company wants to help you acheive a good work/life balance.
What savings can be made?
Under the current HMRC rules, up to £55 per week or £243 per month of salary for one or both working parents can be exempt from Tax and NIC, and also this is NIC exempt for the employer. As a parent, you will save £920 per annum, and possibly double this, if a second parent is in the scheme.
However, there may be changes to the Government tax rules - so VSL will advise and update you when necessary.
What is meant by 'registered or approved' Childcare?
Registered care is officially inspected and heas to reach certain standards.
Registered care providers in the UK comprise: Day Nurseries, Playgroups, Childminders, after School Clubs, Holiday Paly schemes. Nannies and Sitter Agencies are also registered in Scotland.
Childcare at home by Grandparents/relatives or friends is not eligible.
How will I get the exemption?
Current HMRC rules allow your employer to offer you the exemption:
- In addition to your existing salary
- As a salary sacrifice scheme - where you give up an agreed amount of pay, in exchange for the childcare voucher to the same value
- Or - as a combination of both options
How much administration is needed?
The scheme will be introduced by your HR or payroll team, and from then on, VSL will send you your vouchers, make all the redemption payments to your care providers. The programme is flexible and tailor made, so you may opt for other methods, such as online vouchers or direct payments to the Nursery. Your account can be tracked online from your home pc, make administration for you, simple and straightforward.
Can everyone benefit from the scheme?
If you are earning below the tax bands or primary NI thresholds, and paying no tax or NICs, you would not benefit. If you receive more than the basic family element of child tax credit and claim childcare through the Working Tax credit, you should contact HMRC to see if signing up to your employers childcare voucher scheme would affect your tax credits.
Is the offer company wide?
If an employer offers childcare voucher scheme, all staff in the company location will be eligible to take up the offer. However, if your company is multi-site, it does not necessarily have to make the scheme available to staff at each individual site.
Who can claim the support and is it per child?
Any working parent with children under 16 years old, can take advantage of the support where it is offered. If both parents work at the same company, they can both take up the offer, making savings on their individual tax and NICs. The support is not offered on a per child basis.
