Introduce a childcare voucher scheme

Key points

  • Childcare vouchers are a popular employer-provided benefit. They enable limited tax and national insurance savings to be made by the employer and employee provided that certain conditions are met. No new entrants can join a childcare voucher scheme after April 2018, following the phasing in of the new Tax-Free Childcare scheme from April 2017.
  • Employers need to decide whether they will produce and administer vouchers in-house or use the services of a voucher company to do this.
  • Vouchers can be offered as part of a salary-sacrifice arrangement or a flexible benefits scheme.

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