reduce staff childcare costs
Many employers now recognise that the cost of childcare for a working parent is a major part of their monthly budget. It can also be a deciding factor whether a parent returns to work after having a baby.
Whether it forms part of a staff retention campaign or one to attract new employees, smart employers are now able to offer tax and NI efficient benefits to their employees to help cut the cost of their childcare.
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tax and NI efficient benefits
It’s all possible through recent changes in UK tax laws. By restructuring the way employees, who bear regular childcare costs, are paid, employers can help them make savings of up to £1,196 each per year.
The savings arise from making up to the first £55 of an employee’s salary each week (£243 month) exempt from tax and NI. This amount is paid in the form of a childcare voucher to the employee, who will then use it to pay all or part of their childcare costs.
employers save too
As an employer, you also save by not paying Ers NIC on the amount the employee claims in childcare vouchers.
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