The system of Childcare Vouchers was introduced so that there was a mechanism in place to ensure that the money generated through the scheme, was being directed correctly to the childcarers.
The introduction of a true family friendly policy for all, has long been overdue, but in April 2005 legislation was passed which brought about a genuine cash saving for families with childcare. The necessity for parents to return to the working environment soon after childbirth has increased over the years, but the cost of childcare has often been seen as an obstacle to achieving this end. A true and real cash incentive was required to provide the working family with the tax break required to allow them to bring up their new born families, and also to hold down their place in the employment ladder, and encourage future career progression.
The system of Childcare Vouchers was introduced so that there was a mechanism in place to ensure that the money generated through the scheme, was being directed correctly to the childcarers. Employers and childcarers can register for the scheme independently, and it is the responsibility of the voucher provider to instigate sufficient checks to verify the childcarers status as a registered person or organisation. As well as providing the necessary tax breaks for the parent, the childcare voucher scheme also allows for a reduction in the amount of National Insurance which each employer pays, and this saving exceeds the service charge levied by the childcare voucher issuer. Therefore, the scheme can be introduced by all companies, and with no additional costs to burden, it really is a winner with both employers and employees alike.
The scheme allows each tax payer to purchase upto £55 per week of childcare vouchers, via a salary sacrifice arrangement. As long as the qualifying conditions are met, the £55 is free from both tax and National Insurance contributions (NICs). The monthly equivilent of the weekly value is £243. Typical savings in tax and National Insurance contributions (NICs) per tax payer are in the region of £80 per month.
The role of Fennies Vouchers is to bring together the three parties involved, and ensure that the needs of each party are met. The website encompasses the whole scheme, but is deliberately split between the employer, employee and carer. Please visit the section which best suits your enquiry.
The introduction of childcare vouchers provides a genuine cash saving for working parents, and Fennies Vouchers would like to ensure that the experience of using childcare vouchers is quick and simple, and does not add an unnecessary administrative burden to the already busy lives of the working family.
