The employer plays a very important part in the childcare voucher process, and the introduction and successful operation of a childcare scheme provides employers with an instant staff retention tool.
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 early 2005, the child care voucher scheme was devised by the government in order to encourage parents, particularly those who are single parents or on low incomes, 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.
What happens if my employer doesn't offer a scheme?
If you want to take advantage of the child care voucher scheme but your employer isn't yet offering it, then talk to other parents at your place of work to see if they would also take advantage of the scheme. The scheme itself saves your company money and is administered by a third party, so it should be easy to set up. Talk to your HR department or raise the issue at your next staff meeting.
How do I save money?
You save money because you sacrifice a certain amount of salary per month or per pay packet, in return for vouchers. This exchange of money for vouchers takes place before any tax or National Insurance deductions, which means that you are paying less tax. This is where you make your savings.
How much of my salary can I sacrifice?
The government has put a limit on the amount of money each week or each month that you can get tax relief on. They have set this amount at £55 per week or £243.00 per month. Both parents can claim this amount, however, which doubles your potential savings.
How do I get my vouchers?
Once you have signed on with the scheme, your details will be sent to the partner company that administers the scheme. They will know what value of vouchers to send you and will normally send them to your home address, to coincide with your pay day. Some companies offer electronic vouchers, which are credited to an online account which you can access with a password.
What types of child care do the vouchers cover?
The vouchers cover child care for all children up to 15, and slightly older if they are disabled. All registered child care providers can accept the vouchers, from day nurseries and nannies to after-school and holiday clubs.
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.
