Childcare Vouchers – Important information

Are you an employer discouraged from offering a Childcare Voucher scheme because of the terms and conditions during maternity leave? Have you offered a scheme in the past, but removed it when you discovered the HMRC advice relating to an employee receiving Statutory Maternity Pay?

If you answered yes to any of the above and you haven’t heard the news yet, this email might be one of the most important ones you read today.

The reason being, is the final barrier for offering the scheme has been removed by a recent Employment Appeal Tribunal decision.

Yes, that’s correct – employers offering a Childcare Voucher scheme are no longer required to pay for their employees’ vouchers during maternity leave when only Statutory Maternity Pay is paid.

The Employment Appeal Tribunal has released the following statement: “It had not been the intention of parliament to require employers to continue providing vouchers at a time when there was no salary which could be sacrificed in respect of them.”

Please note however – employees who receive enhanced maternity pay are still allowed to sacrifice the vouchers from their pay should they wish to do so.

So it’s not too late to offer the scheme.

Tax-free Childcare isn’t set to launch until 2017 and research reveals that 80% of working families would still be better off using Childcare Vouchers.

Now, with this final barrier removed, it is the perfect time to take advantage of the National Insurance savings for your business. If your employees sign up to the scheme now, they will still be able to access Childcare Vouchers when Tax-free Childcare is introduced.

If you don’t already offer Childcare Vouchers, set up a scheme now to ensure your employees can benefit from maximum savings on their childcare during the next year.

If you are already an employer that offers Childcare Vouchers you can make great National Insurance savings on the Childcare Voucher scheme.

For more information, download HR Rev’s FREE guide to Childcare Vouchers…



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