Scheme rules
Questions answered on this page:
How much can I take in childcare vouchers?
Can anyone apply for childcare vouchers?
Can I use any type of childcare?
Will any carer accept Childcare Choice vouchers?
How long do I have to sign up for?
Can I leave the scheme at any time?
How do I leave the scheme?
If I leave, will I be reimbursed for unused vouchers?
How much can I take in childcare vouchers?
The maximum you can take tax and NI free is £55 per week, or £2,916 per year. Any amount over this is subject to tax and NI. When taking childcare vouchers, you must ensure that your salary is not reduced to less than £421 per month (£97 per week). This is to ensure the minimum amount of NI on which a number of state benefits, including Statutory Sick Pay, are dependent is paid.
Can anyone apply for childcare vouchers?
To take childcare vouchers you must fulfil the following criteria:
· You must be either the parent or step-parent of the child, or the child lives with you and you have parental responsibility for that child. See HM Revenue & Customs for more details.
· Childcare vouchers can be used to pay for care up to 1st September following the child’s 15th birthday, or 1st September following their 16th birthday if the child is disabled. See HM Revenue & Customs for more details.
· You must use the vouchers to pay for registered or approved childcare. See HM Revenue & Customs for more details.
Can I use any type of childcare?
No. You can only use the vouchers to pay for registered or approved care. Details of this can be found on HM Revenue & Customs Website.
Will any carer accept childcare vouchers?
Most carers are happy to accept childcare vouchers. More information is available for carers by following this link.
How long do I have to sign up for?
Your employer will stipulate how long you have to remain in the scheme for. Most employers will expect you to stay in the scheme for a year.
Can I leave the scheme at any time?
As part of a Salary Sacrifice Agreement, you agree to take the vouchers over a fixed period agreed (usually one year) and should remain on the scheme for that period of time. You may however leave the scheme under exceptional circumstances e.g. birth, marriage, divorce or death. Any other reason would have to be agreed on an individual basis with your employer.
How do I leave the scheme?
If you wish to leave the scheme prior to the end date of the agreement, your employer has to give consent. Most employers will agree if you have experienced a life-changing event, such as birth, death, marriage, etc. There may be other circumstances which are acceptable but these would be subject to your employer’s discretion.
If I leave, will I be reimbursed for unused vouchers?
It is your employer’s decision whether you can be reimbursed for your vouchers. If this is agreed, you will have to pay back the tax and NI on the reimbursed amount through payroll.