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Can a company close its childcare voucher scheme to new applicants?

3 replies

muriel76 · 14/09/2012 17:25

Hello

I am starting a full time job soon and we will have to use a childminder for our two sons. My husband has seen posters at work saying his company takes part in the government's childcare voucher scheme so we were hoping to use it and save some of the costs.

However today my husband was told that the scheme is closed to new applicants so he can't take part? Is this 'allowed'? I expect that it is, but just wanted to ask if anyone knew for sure (grasping at straws!)

Thanks for any advice/info.

OP posts:
cogitosum · 15/09/2012 10:31

It's not allowed. The scheme has to be available to all employees within an organisation. It's one of the conditions for the tax exemption. On their employee guide HMRC specifically mention this point about closing it to new members but I'm on my phone so can't find it to link. I can give you the link on Monday or you could look on HMRC website for employer supported childcare

tribpot · 15/09/2012 10:36

Here is the link - towards the end of the doc (sorry, it has no page numbers)

Closure of an existing scheme to new members

If you close your scheme to new members, the scheme will no longer be considered to be 'generally open' to all your employees, or all your employees in a particular location. The scheme would not meet all the required conditions for the tax relief to apply and if you continue to provide employer-supported benefit to some of your employees, it will be fully taxable and subject to National Insurance contributions in the normal way.

muriel76 · 16/09/2012 08:43

Hello ladies,

Thank you so much for the information and the link! Great to know that we should be able to join after all.

I will get the husband onto it tomorrow!

Very much appreciate your help, thank you.

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