Frequently Asked Questions

We have listed below some of our frequently asked questions, if you have any other queries please contact us on 0800 288 8727.

• Is there a minimum or maximum number of employees required to participate in the scheme?

  No, but the scheme must be made available to all employees.

• Are all employees eligible to join the scheme?

  Yes, although the employee’s salary must not fall below the national minimum wage (£5.73 per hour) or lower earnings limit (£90 per week) after the salary sacrifice. Latest information can be found at http://www.hmrc.gov.uk/nmw/index.htm.

• What is salary sacrifice?

  A salary sacrifice happens when an employee gives up the right to receive part of the cash pay due under his or her contract of employment. This sacrifice would be made in return for the employer’s agreement to provide the employee with childcare vouchers. The “sacrifice” is achieved by the employee signing an agreement to vary their terms and conditions of employment relating to pay. Please refer to our full salary sacrifice guidelines.

• What is the maximum contribution allowed per employee?

  Every employee will be entitled to the £55 a week exempt limit if the qualifying conditions are met.

• Is the £55 a week exemption available to every employee or is it limited to each family?

  This is available to each parent or legal guardian, enabling the employee to make twice the saving.

• What are the qualifying conditions?

  Vouchers cover children up to the age of 16 and can only be used to pay registered and approved childcarers. E.g. registered childminders, nurseries, after school clubs, holiday clubs etc. Approved Childcare List.

• How will overtime payments be calculated?

  This would be at your discretion but could be based on notional salary.

• Could an employee’s state benefits be affected by joining the scheme?

  Yes, information should be obtained with regard to state pension, SMP and SSP. Please refer to our salary sacrifice guidelines

• Could offering childcare or childcare vouchers affect my employees’ entitlement to tax credits?

  Yes. Childcare costs that you meet directly or through vouchers cannot be taken into account for tax credit purposes. If you reduce your employees’ cash pay this may also affect their entitlement. If an employee is unsure about how childcare vouchers will affect their tax credits they should contact the tax credit helpline on 0845 300 3900.

• How will an employee’s pension contributions be affected?

  This would need to be clarified with your company pension provider to verify that the employee’s salary and voucher value are considered as pensionable earnings.

• How long will it take to set up the scheme?

  Dependant on the integration required this could be anything from 1 to 10 days.