GP Care’s HR Service is pleased to announce the introduction of a new Child Care Voucher scheme that can save practice employees over £1,000 where they incur qualifying child care costs.
In essence, employees are paid up to £2,916 pa of their salary in Child Care Vouchers. The value of the Vouchers is not subject to PAYE tax or National Insurance and therefore delivers the following savings:
- Employees will save – tax at the rate paid by the employee (typically either 20% or 40%) plus Employee’s National Insurance (typically 11% on wages between £5,720 and £43,888pa; and then 1% on wages over £43,888pa);
- Employers will save – Employer’s National Insurance which is currently 12.8%; this equates to a saving of £373 per employee (if the employee takes their full voucher entitlement) and more than covers the cost of setting up and administering the Service