2. BENEFITS
CHILD CARE VOUCHERS
The childcare voucher scheme is
endorsed by HMRC and is designed
to help working parents with the
cost of their childcare.
The vouchers can be used to pay
for a variety of registered childcare
including nurseries, nannies, after
school activities, summer camps,
au pairs, playgroups, holiday clubs
and childcare provided by schools
(breakfast clubs etc.).
Who is the supplier?
Busy Bees operate a completely
online Childcare Vouchers service,
we set up individual accounts for
each parent where they are able to
check their funds, make payments
and check any payments made.
How does it benefit?
Working parents can benefit from
significant tax and NI savings of
up to £1,195 a year using Childcare
Vouchers, and up to double the
amount if both parents are part of a
Childcare Vouchers scheme
The scheme is offered to your
employees by you as a staff benefit
via a salary sacrifice arrangement,
4
where they can opt to exchange
part of their monthly salary in return
for the vouchers for a period of
12 months. Your employees will
save tax and National Insurance
Contributions on the amount
selected (up to their tax band limit).
They will be set up with an online
childcare voucher account, where
they can accumulate the funds
and make direct payments to their
chosen carers.
The vouchers are valid for children
up to the age of 15 or 16 if they are
registered with a disability.
Your employees are free to leave the
scheme at any point providing they
have experienced a ‘lifestyle event’.
These are at the discretion
of you, the employer, but they
typically include:
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Change in working hours
Change in salary
Leaving employment
Redundancy
Birth/adoption
Change in childcare circumstances
Moving abroad