Working parents who have children under 16, or under 17 if disabled, in registered and approved childcare can qualify for childcare vouchers. Vouchers are generally issued by employers as part of a salary package and used as full or part payment towards the cost of childcare fees.
which childcare providers qualify?
childminders, nurseries and play schemes
out-of-hours school clubs
nannies
au-pairs
registration
Employees register their details with us, including those of their child, childcare provider and salary. The tax bracket their basic salary falls into will determine the amount of vouchers they can claim per month.
employee pays tax at
employee can claim monthly/annually
employee save annually
you saves annually
20%
£243/£2916
£933
£402
40%
£124/£1484
£625
£205
50%
£97/£1166
£605
£161
running things on an automated basis keeps things straight and simple
salary sacrifice
Once an employee’s salary details are confirmed, we run a salary sacrifice. This needs to be repeated at the beginning of each tax year and confirms their basic contractual wage/salary, including taxable benefits in kind, but not overtime earnings or bonuses. It is the post salary sacrifice amount that determines the maximum amount of vouchers they can claim per month.
operation
The childcare voucher scheme runs on an automated basis. We agree a set amount of vouchers per month with the employee which is taken from their gross pay and paid via Cheshire Childcare Vouchers direct into their childcare provider's bank account every month. No physical vouchers need be exchanged.
step 1
step 2
step 3
step 4
step 5
Employees register and set their monthly voucher amounts
Employer orders and receives annual voucher packs for staff
Cheshire Childcare Vouchers invoices employer each month
Employer pays Cheshire Childcare Vouchers
Cheshire Childcare Vouchers automatically pays childcare provider
offering childcare vouchers
You can introduce childcare vouchers in a number of ways:
salary sacrifice - employees elect to substitute part of their salary in return for up to £2,916 per year in vouchers.
straight benefit - vouchers can be given in addition to salary—at an additional cost to the employer. This option can be used effectively at annual salary reviews or package structuring for new employees.
part of a flexible benefits package - vouchers are an easy add-on to a flexible benefits scheme. Employees can choose to receive childcare vouchers in place of another benefit or additional salary.
