Fact Sheet on Child Care
What you need to know if you are getting assistance with the cost of Child Care from your Employer.
A tax and NI free allowance of £55 per week (£243 per month) is available, to all parents, towards the cost of childcare. Both parents can claim the allowance, even if they work for the same employer.
This is normally provided by your employer by way of a salary sacrifice arrangement, and saves your employer £373 per annum per employee.
The savings to you is £943.00 pa if you are a 20% tax payer and £1172.00 if you are a 40% tax payer.
To qualify for this tax free benefit your child carer must be registered under the appropriate legislation.
As a result of a recent change in rules, Nannies must now register with OFSTED.
It should be noted that your employer does not need to subscribe to a Voucher scheme, but may contract direct with the child carer and pay them monthly against Invoice.
If you should have any questions on this or any other payroll matters, please contact Sandra Knapton-Hajo at The Nanny Payroll Service.
Tel: 01536 262100 Fax: 01536 262601
Email: Sandra@nannypayroll.co.uk
Further information can be obtained from: