The government allows each working parent to convert up to £55 per week of their salary into vouchers to pay for childcare. The value of the vouchers is deducted from salary prior to tax and national insurance.
For a standard rate tax payer this could mean a saving of up to £962 or more per year.
How does the scheme work?
The scheme is designed to be easy to use with minimal administration required from the employer. Once the scheme has been set up the parent receives their vouchers and hands them to the carer for payment. The carer then redeems the vouchers by telephoning or emailing us and we pay the amount directly into the carer’s bank account
Is it complicated to set up?
We can provide you with all the necessary information and practical assistance for setting up your scheme. The scheme is fully managed which means we work with your staff to explain how the scheme works, implement and run the scheme and provide on-going advice, assistance and monitoring.
What about explaining the scheme to staff?
We are happy to explain the scheme to your staff. We can put in place a programme for informing staff which may include providing leaflets, publicising the scheme through your staff newsletter, speaking to staff individually, emailing staff and providing draft letters for you to explain the scheme.
Are all staff eligible?
The Inland Revenue stipulate that staff need to be the parent, and to use the vouchers to pay for registered or approved childcare.
How much does it cost?
An administration fee is charged for the provision of paper and electronic Childcare Vouchers of 10% of the face value of the vouchers. The fee covers the standard implementation process and the on-going provision of the service. As an employer you will normally make a National Insurance Contribution saving of 12.8 percent of salary. The provision of childcare vouchers to your staff will therefore not be an additional cost as your savings will outweigh the administration charge.
How can I find out more?
If you have any queries about how the scheme operates please contact Joanne Chambers on 01403 240205 or e-mail
jo@hr-services-partnership.co.uk