Childcare vouchers effectively let workers swap untaxed income for childcare. Users pay no income tax and national insurance on the money they spend on childcare. This is known as a salary sacrifice scheme.
The vouchers requested are deducted from your pay packet prior to National Insurance and Tax being applied so giving you savings.
From 6th April 2011 the government brought in some changes regarding the Childcare Voucher Scheme for new employee's only (please see table below), anyone that is on the Childcare Voucher Scheme before 6th April will be unaffected.
| Basic rate (20%) |
£55 |
£243 |
| Higher rate (40%) |
£28 |
£124 |
Employees electing to take £55 per week in Childcare Vouchers instead of salary could save up to £933 a year and employees electing to take £28 per week in Childcare Vouchers instead of salary could save up to £624 a year.
The Bath & North East Somerset Childcare Voucher Scheme is a not-for-profit salary sacrifice scheme, which at current time we are only able to offer to other local authorities, not for profit organisations and designated public bodies under the Local Authorities Act.
If your organisation does not fall into this area there are a number of other voucher scheme's available within the UK.
If you would like more information about the Bath & North East Somerset Childcare Voucher Scheme and how it can generate savings for yourself and your organisation please do not hesitate to contact this office on Vouchers@bathnes.gov.uk or Telephone 01225 395394