Does offering the Childcare Account
Scheme cost us money?
No. Both the employer and employee make
financial savings through the current legislation.
Do we need to seek Inland Revenue
The Inland Revenue will not comment on
salary sacrifice schemes. We recommend you contact your Tax Office to advise
them of your intention to provide this childcare benefit.
Can I offer childcare or childcare
vouchers in addition to pay or does it have to be under a salary sacrifice arrangement?
How you decide to offer the childcare
benefit is up to you. You will need to ensure that any salary sacrifice
arrangements are effective for tax and NI purposes.
for more information.
Is the £55 a week (£243 per month)exemption available
to every employee?
Every employee will be entitled to the
£55 week (£243 per month)exemption limit if the qualifying conditions are met.
What records do I need to keep?
You will need to keep records that
qualifying conditions are met – you may have to produce them to the Inland
Revenue. These records should include:
- Evidence the scheme is available to all staff
- Details of the childcarer(s) used including
their registration or approval numbers and when that approval expires.
- Evidence that your employees participating in
the scheme are required to inform you of any changes in the registration or
approval status of their childcarer.