1. Are all employees eligible to join the scheme?
Yes, although your must not fall below the national minimum wage or lower earnings limit after the salary sacrifice. Latest information can be found at http://www.hmrc.gov.uk/nmw/index.htm.
2. What is the maximum contribution allowed per employee?
Each employee is entitled to £55 per week / £243 per month exempt from tax and NI if the qualifying conditions are met.
3. Is the £243 a month exemption available to every employee or is it limited to each family? This is available to each parent or legal guardian, enabling you to make twice the saving. Each family could save over £2200 per annum on childcare fees.
4. What are the qualifying conditions?
Vouchers cover children up to the age of 15 and can only be used to pay registered and approved childcarers e.g. registered childminders, nurseries, after school clubs, holiday clubs etc. Refer to our approved childcare list.
5. Will my childcare provider accept the vouchers?
Yes, you will provide contact details for your childcare provider and an information pack will be sent to them. If you have multiple childcare providers the £243 per month can be split anyway you require.
6. How will the scheme work if my childcare costs vary from month to month?
You should determine your annual childcare costs and divide this into a monthly amount. Vouchers do not have to be used each month and do not expire.
7. Will my Statutory Maternity Pay be effected if I receive vouchers?
Statutory Maternity Pay is calculated on your ‘average earnings’ during weeks 17-25 of your pregnancy. As childcare vouchers are NI free, their value cannot be included when making this calculation. To ensure that your SMP is not reduced, you should leave the childcare voucher scheme by week 17 of the pregnancy.
8. Could my state benefits be affected by joining the scheme?
As long as your salary does not drop below the Lower Earnings Limit these benefits will not be affected.
9. How will my pension contributions be affected?
Please contact our customer service team to verify whether your salary and childcare vouchers are being considered as pensionable earnings.
10. Could accepting childcare vouchers affect my Working Tax Credit (WTC) or Child Tax Credit (CTC)?
Yes. Your entitlement to WTC and CTC is dependant on many factors including the number of hours you work, how many children you have and whether you pay any eligible childcare costs. A salary sacrifice for childcare vouchers can reduce your relevant pay for tax credit purposes as the value of these benefits are not included as income. Therefore potentially increasing the amount you receive in WTC.
If you have childcare costs that are eligible for the childcare element of WTC, the costs eligible for the childcare element of the tax credit will be reduced by the amount of those costs met by your employer (e.g. the cost covered by a voucher). The childcare element of WTC may therefore be reduced. You chould consider whether it is more beneficial to claim tax credits before agreeing to your employers voucher scheme.
Also see http://www.hmrc.gov.uk/childcare/interaction-tc-cv.htm.
12. How will I receive vouchers?
We offer 3 types of vouchers to pay your
childcare provider, this allows you to
choose which best suits your requirements.
Paper Vouchers
Posted to your home address to arrive on
pay day, once you have passed this to your
childcare provider they can then contact us
to claim the voucher. This can be done by
contacting our freephone number, by email
or by returning to us in the post.
Electronic Vouchers
Online account via our website, you can log
on at any time to view your account or make
payment requests. You can also set up a
regular payment where we will pay your
childcare provider at a specified frequency.
Auto-Payment Vouchers
This is an automatic payment direct to your
childcare provider each month on a date you
specify. The easiest method if your payments
will remain the same each month. |
