FAQs Employer's FAQs about childcare vouchers

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 approval?
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.

Visit www.inlandrevenue.gov.uk/childcare 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 where appropriate.
  • 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.