As any working parents will attest, the cost of childcare for a baby or child up to the age of five is very expensive. In fact for many families, the costs are shockingly often more than their monthly mortgage or rent!!! So, being able to help your employees with the cost of their childcare can make a significant difference to their family finances, not to mention their return to work decision. Currently the Childcare Voucher benefit system allows you to help your employees to meet these costs.
But as of April 2018 this will change and the scheme will be closed to new joiners. After this date no new employees will be able to receive Childcare Vouchers, only existing employees already receiving them will be able to continue with the scheme.
So post 2018, as an employer how can you help your employees with their childcare costs?
The answer: WORKPLACE NURSERY BENEFIT
How does Workplace Nursery Benefit work?
Quite simply, it allows your employees to offset their full monthly nursery fees against tax and NI savings. Currently, there is no capped amount, so a parent paying £1,800 per month in nursery costs would save £5,443 (Figure based on eligibility and nursery costs) a year compared with just £933 with Childcare Vouchers.
Savings this big are the equivalent of a pay rise! This benefit will help you attract new employees whilst also helping your existing employees with their rising costs of nursery care.
The Workplace Nursery Benefit costs you nothing to implement or administer. In fact, in many cases the benefit can provide your business with a saving in NI contributions.
If you would like to discuss anything to do with Childcare Vouchers or how to implement the Workplace Nursery Scheme, give HR Revolution a call +44 203 538 5311 or email: firstname.lastname@example.org, we’d love to help.