Childcare Vouchers to Help Staff
Childcare voucher administrators have urged employers to take advantage of the tax savings vouchers offer to help staff with children through the recession.
Childcare vouchers allow employees to use up to £243 of their monthly salary to pay for childcare, without paying any tax or national insurance contributions (NICs) on this amount. The vouchers can be redeemed at any approved nursery, crèhe, play scheme, child minder or after–school club.
Early Years Vouchers, a childcare voucher administrator, pointed out that employers who introduce a voucher will also benefit by making savings on their NICs. It claimed that employers can save up to £227 per working parent per year. Early Years Vouchers director Amanda Ward said:
“By offering money–saving benefits, such as childcare voucher schemes, organisations can not only retain qualified employees, but also produce a positive working relationship between employer and employee. Before long, employers will be expected to offer such schemes in the same way they would do a pension scheme, for example.”
The Chartered Institute of Personnel and Development rewards adviser, Charles Cotton, said employers will also benefit from parents being able to arrange childcare around their work.
“It shows the business in a good light to its employees, and it also helps people to achieve work–life balance — if working parents have childcare vouchers they can balance their commitments more easily and will not have to take time off to look after the children,” said Cotton.
Employers can choose to run their own childcare voucher scheme or use a voucher company which will carry out the administration for them.
For more information on setting up a Childcare Voucher Scheme, visit the Daycare Trust website
To find out more about employer–supported childcare, visit the HM Revenue & Customs website