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.
The intention to operate a salary sacrifice scheme requires notification to your own HMRC office. The Revenue will not provide guidance in advance of the commencement of such a scheme, but failure to do so could lead to problems in the future, especially if inspected for a PAYE audit. It is good practice to include examples of revised documents that will be used within the scheme. Please find below a suggested letter which could be used to advise HMRC of your intentions.
At (enter your company name), we are in the process of setting up a salary sacrifice scheme for the purpose of supplying electronic childcare vouchers to our employees. We are aware that you will not provide specific advice prior to the launch of the scheme, but we thought it to be good practice to provide you with as much information as is possible.
Employees applying to join the scheme will be required to sign a revised contract detailing their reduced annual salary, plus a specified amount for the purpose of purchasing electronic childcare vouchers. To ensure compliance with the new legislation, participating employees will only use formal/approved childcare. Tax and National Insurance (NI) relief will be limited to £55 per week.
Purchases of electronic childcare vouchers will be fixed at the same value per pay period, or until such time as the employee experiences a ‘lifestyle change’, and makes a request to amend their remuneration package. Any such changes will be contractral, and will include the provision for a further contract amendment.
Please find enclosed sample documents for your attention. The scheme will operate within PAYE. If you are able to offer advice at this time, we would of course be happy to receive it.
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.
