Introduce a childcare voucher scheme
- 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.
- Following the phasing in of the new Tax-Free Childcare scheme from April 2017, the Government had said that the last day that new entrants would be able to join an established childcare voucher scheme would be 5 April 2018. However, on 13 March 2018, the Secretary of State for Education stated that the closure of schemes to new entrants would be delayed by six months.
- 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.