Service: A tax-efficient benefit, which helps employees with the cost of their childcare, and generates savings for both employee and employer.
The increasing cost of childcare is a real concern for parents balancing work and home life. With parents making up almost 40% of the UK’s workforce, this is an important issue for both employers and employees. Childcare Vouchers are a simple, secure, flexible and cost-effective way for employers to provide assistance to parents.
Being a family-friendly employer makes sound financial and business sense, and promotes a positive image for the practice. Supporting employees with the cost of childcare can help attract and retain staff, reduce recruitment costs, improve motivation, reduce absenteeism and encourage staff to return to work after maternity, paternity or adoption leave.
When introduced as part of a salary sacrifice scheme, current Revenue limits allow employers to provide parents with up to £2,916 a year in vouchers free of income tax and national insurance. Employee tax and NIC savings can be as follows:
Income Tax %
Employers also make NIC savings on the amount of salary sacrificed for Childcare Vouchers. If the maximum sacrifice is made, employers will save £373 per annum per person in the voucher scheme.
- Tax and NIC savings for employee and NIC savings for employer
- Staff value childcare vouchers highly, helping attract and retain employees, while overcoming recruitment and training issues
- Promotes a positive company image, demonstrating commitment to staff and their families
- Scheme pays for itself through the employer’s NIC savings
- Scheme is very simple to set up and administer
- Both parents can receive the vouchers
- Vouchers can be used to pay for all types of registered and approved childcare, including childminders, nurseries and after-school clubs
Cost: The £200 set up charge has been waived for members of the GP Care network, leaving a3.75% admin fee (of the total value of the vouchers) which is invoiced quarterly in arrears
Action: For further information or to arrange a meeting to discuss the next steps, please call PES on 0800 082 0569 quoting ‘GP Care’