About childcare vouchers
Questions answered on this page:
What are childcare vouchers?
How does this save me money?
How much will I save if I join the scheme?
Can my partner also take childcare vouchers?
How do I join?
What are childcare vouchers?
Childcare vouchers are a government-led initiative with the aim of encouraging employers to help their employees with their childcare costs. By running a childcare voucher scheme, employers save on Employer National Insurance and enable employees to save tax and National Insurance Contributions. The most common method of offering childcare vouchers is through salary sacrifice whereby you elect to take part of your existing salary as childcare vouchers. You simply go on line and enter your details following the on screen instructions once your employer has signed up with Sodexho Pass, the scheme provider. Your employer then orders your vouchers and you receive them on the day specified, usually payday. You then use these vouchers to pay your carer on line.
How does this save me money? Childcare vouchers are free from tax and National Insurance contributions for the value of vouchers you order – up to a maximum of £55 per week.
How much will I save if I join the scheme?
The amount you save depends on the rate of tax and NI you pay. The maximum you can save is £1,195 per year. To calculate how much you would save, click here.
Can my partner also take childcare vouchers?
Although you are restricted in the amount of childcare vouchers you can have tax and NI exempt, if your partner also takes childcare vouchers the benefit can effectively be doubled to £110 per week. Your partner or spouse can send information to their employer by clicking here.
How do I join?
Your employer has to put a childcare voucher scheme in place. If your employer doesn’t have a scheme in place, they can visit this site for more information or you could send them an email with more information using this link.