If I told you that as an employer you could make a financial saving by offering your employees something that many of them would really value, would you want to hear more?
Well, by introducing childcare vouchers and offering them to all your employees through a tax efficient salary sacrifice scheme, you could do just that.
Employees can opt for up to £243 per month in childcare vouchers instead of £243 of their salary – they sacrifice money for vouchers. As a result employees pay no tax or NI on this money and the employer pays no NI.
The vouchers can then be used to pay nurseries, after school clubs, summer schemes and other recognised childcare providers.
Unfortunately, they can not yet be used to pay relatives (such as grandparents) who care for your children while you are at work, but the Government are thinking about it – slowly!
Childcare voucher schemes can be introduced in conjunction with other benefits or in isolation. They must be offered to everyone to be eligible for their tax free status and certain contractual changes are required, but savings can be made even if only one employee takes up the benefit.