The Childcare Voucher scheme has been able to provide a positive benefit to a number of parents in our organisation.

Rachel Street
Ofsted

 

Eligibility


The following three conditions form part of the Tax and National Insurance exemption for paper and electronic Childcare Voucher schemes.


1. The scheme is available to all employees

For any of your employees to qualify for the exemption the Childcare Voucher scheme must be:

  • Open to all of your employees
  • Open to all of your employees based at the location where the scheme operates

Records you need to keep

  • A copy of the letter to your staff or poster used to advertise your scheme to your staff.
  • Your staff handbook where this includes details of eligibility

2. The child is a qualifying child

  • The child for whom the Childcare Voucher is provided must be a child of the employee or a child who lives with the employee and for whom he/she has parental responsibility.
  • A child qualifies up to the 1st September following their 15th birthday or the 1st September following their 16th birthday if he/she is disabled.

Records you need to keep

  • A record of the child's date of birth, indicating, where appropriate, if the child is disabled.
  • A note of the relationship between the child and your employee if they are not the child's parent.

3. The childcare is registered or approved

  • The exemption applies in the tax week in which you provide the Childcare Vouchers to your employees. You must be satisfied, at that point, that the vouchers will only be used to pay for childcare that is registered or approved.
  • Your employees do not need to use the vouchers in the week (or month) they are provided and can save them, for example to meet higher childcare costs during school holiday periods.

Records you need to keep

  • A copy of your scheme rules that includes a requirement for employees to notify you of any change in circumstances in relation to the child or childcare.
  • A record of the childcare provider's name and registration or approval number.
  • A note of when the childcare provider's approval is due to expire.

Employers need to be aware that although Childcare Vouchers are beneficial to the majority of employees, they aren't always a financially sensible option and tax credits can be affected. Parents who are on a modest income, for example, might be worse off taking the vouchers than if they had simply accepted cash.

To help you answer questions from working parents who may be interested in joining a scheme, we can help in several ways.

Plus we provide a dedicated help desk to answer any queries. And there are options for our team to set up drop-in clinics and roadshows or hold a virtual event for you.

Find out more

To find out more about eligibility and the benefits of setting up an Edenred Childcare Voucher scheme please contact us, alternatively you can:

Next: Read more about launching our scheme

Employers
Enquire online here
 

Or give us a call on 0843 453 4406*


 
 

*Calls cost 5p per minute plus your phone company's access charge.