childcare vouchers scheme

[kipkip]

Hiya,

Does anyone know how the childcare vouchers scheme works with employers?

I work for a very small company (theres 5 of us!) with NO benefits whatsoever (and we're paid by cheque - stone age!), but would be willing to ask them if they would consider starting the scheme....

Does it cost them anything? Does anyone know how it works?

There are likely to be some admin costs for the employer but I think they are offset by the fact your employer doesn't pay employer NI contributions on the part of your salary you sacrifice in order to get the vouchers.

I recommend you do some research yourself with one of the voucher providers (e.g. the one my company uses is www.busybeesbenefits.com/ and they have info for employers on the site) and then try to present a business case to your employer. I imagine the salary payment by cheque could be an issue as the childcare voucher providers would expect payments by BACS not cheque.

Good luck - they are well worth having and you really need to get in by April if you pay higher rate tax as the rules are changing from April if you are not already in a scheme.

My DH just set up a scheme with his (small) family company. It works through salary sacrifice, for you. A maximum of £243 a month comes off your salary, and so you don't pay tax (and maybe not NI, can't remember exactly) on that part.

For the employer, they save paying NI (12% or something), but they do pay a small fee to the provider (around 5%) so the employer still wins, and so do you.

You just need to get someone at the company to call the childcare voucher provider to set up the scheme - probably the person who does payroll.

Childcare vouchers can be administered by the employer.

Here is a link to government guidelines: childcare vouchers