Covid-19 Faqs - Frequently Asked Questions

We are aware that you will have a number of questions regarding your Childcare Vouchers given the current situation. We've put together responses to the frequently asked questions we've been receiving below:

Frequently Asked Questions

 

Why Choose Fideliti?
  • Experts in transitions from other providers
  • Fully managed service as standard
  • Competitive management fee
  • 2 types of childcare vouchers
  • Freephone customer care line
  • Personal & fully flexible approach

 

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.

1.Can our organisation implement a new childcare Voucher Scheme?
2.Is there a minimum or maximum number of employees required to participate in the scheme?
3. What is the maximum contribution allowed per employee?
4. Is the £55 a week exemption available to every employee or is it limited to each family?
5. What are the qualifying conditions?
6. How will overtime payments be calculated?
7. Could an employee’s state benefits be affected by joining the scheme?
8. Could offering childcare or childcare vouchers affect my employees’ entitlement to tax credits?
19. How will an employee’s pension contributions be affected?

1. Can our organisation implement a new childcare Voucher Scheme?

The childcare voucher scheme closed to new joiners on 4th October 2018. However, if you have an employee that has moved across to you under a business transfer that's covered by the Transfer of Undertakings Protection of Employment (TUPE) and their terms and conditions remain the same, they will be eligible to join. (As long as they were in their previous employer’s childcare voucher scheme.)

In this scenario the employee can join their new employer’s existing childcare voucher scheme, or the new employer can start a new scheme for them if they don’t currently run a childcare voucher scheme.

After the 4th October 2018 employees will be permitted to re-join the childcare voucher scheme if they have remained with the same employer and have had a salary deduction taken/voucher issued within the previous 52 weeks. After this period they will be classed as a new joiner and will be unable to re-join the scheme as per HMRC guidelines.

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2. Is there a minimum or maximum number of employees required for Fideliti to be able to administer a scheme?

Fideliti do not have a minimum number of employees required to review your current scheme. However, only those employees who were registered and in receipt of childcare vouchers before the scheme closure date of the 4th October 2018 would be eligible to move across to Fideliti as part of the transition.

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3. What is the maximum contribution allowed per employee?

Employees are eligible to the following:

  • Basic rate tax payer £55 per week / £243 per month
  • Higher rate tax payer £28 per week / £124 per month
  • Additional rate tax payer £25 per week / £110 per month
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4. Is the £55 a week exemption available to every employee or is it limited to each family?

  • • Childcare vouchers are available to each parent or legal guardian, enabling the employee to make twice the saving.
  • • If both parents are on the childcare voucher scheme each family could save up to £1,866 per annum on childcare fees.
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5. What are the qualifying conditions?

Childcare vouchers can be used to make full or part payment for childcare for children up to 1st September following the child’s 15th birthday, or 16th birthday if the child is disabled. They can only be used to pay childcarers that are registered and approved by the relevant governing body.

Registered or approved childcare includes: Registered Childminders, Nurseries, After School Clubs, Holiday Clubs etc.Approved Childcare List.

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6. How will overtime payments be calculated?

This would be at your discretion but could be based on notional salary. (Notional salary is the employee’s original salary prior to the deduction of childcare vouchers.)

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

Yes, information should be obtained with regard to state pension, Statutory Maternity Pay and Statutory Sick Pay.

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8. 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 0300 123 4097.

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9. 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.

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