Childcare vouchers now have a very important part to play in the everyday lives of working families. At last, there has been a true and genuine incentive introduced which generates substantial cash savings for each working parent.
Welcome to the section dedicated to the employer. You will find here guidance from HMRC about running a salary sacrifice scheme, useful examples of where the savings are made, and an essential checklist for making sure you have everything in place.
Register with Fennies Vouchers and just let your parents and their employers do the rest. It really is that simple. You will still receive the same pounds value in money for the childcare you offer, but your parents will be better off due to the tax and national insurance savings.
Introduced in April 2005, the child care voucher scheme was devised by the government in order to encourage parents to return to work. The scheme is offered by employers, who allow participating staff members to sacrifice a certain amount of their salary per week or month; capped at £55 per week or £243.00 per month. In exchange for this salary, they receive vouchers which can then be used to help pay for child care costs.
Am I obliged to offer this scheme to my staff?
You are not legally obliged to offer this scheme to your employees, but it is worth investigating. As the exchange of salary for vouchers is made before any income tax or National Insurance contributions, the employee saves on his or her tax and NI bill and the employer saves on their NI bill. It is a benefit that costs the company nothing, is largely administered by a third party and is attractive to employees.
What benefit does my company get?
In addition to the financial saving on your National Insurance bill, you are also offering a benefit that is very attractive to existing and prospective employees. The type of benefit package offered plays a key role in an employee deciding to accept a job with you, or an existing employee deciding to move on. As both parents can claim the vouchers, this benefit appeals to all your existing and future staff.
How do I start a child care voucher scheme?
If you choose to start a scheme, you will work with a partner company which will handle the majority of the administration of your scheme, including the issuing and redeeming of vouchers. For more information on how we could help you set up your scheme, please call Fennies Vouchers on 020 8763 8039 or email info@fennies.co.uk
How do I communicate the scheme to my staff?
Your partner company will help you to market your child care voucher scheme to your staff. This may be through leaflets, and payslip information. If you offer the scheme, you are obliged to make it available to all your staff, so you need to be sure that your communication is effective.
Date: 08/12/2005
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.
