Information for Employers

How can childcare vouchers save money for my company?

Employers are allowed to offer their employees up to £55 per week or £243 per month in childcare vouchers, free of tax and national insurance. Vouchers can be provided in addition to salary or via salary sacrifice. By offering a salary sacrifice scheme, employers save up to 13.8% of NICs, or £402 per employee per year. The total cost of the vouchers and any administration charge can also be offset against corporation tax.

The amount of childcare vouchers which parents can receive tax-free is set by the Government and varies depending on the parent's contractual pay and benefits. Broadly speaking, basic-rate taxpayers can receive up to £55 a week (or £243 a month), higher-rate taxpayers can receive up to £28 a week (or £124 a month) and additional-rate taxpayers can receive up to £22 a week (or £97 a month). We conduct preliminary earnings screening when employees join the scheme, to help you assess the amount of vouchers which they can receive. The earnings assessment is based on contractual pay and benefits from your employment, so some parents who pay higher-rate tax as a result of overtime, discretionary bonuses or investment income will still be able to receive the full voucher allowance of £55 a week.

Parents who ordered their childcare vouchers before 6th April 2011 can receive up to £55 a week of childcare vouchers, regardless of their tax band. This exemption applies as long as they don't move to a new job or leave the scheme for a period of more than 12 months.

What are the other benefits of childcare vouchers?

With increasing numbers of employers offering voucher schemes, childcare is becoming a key factor in retention and recruitment. KiddiVouchers can help you to offer your staff simple, efficient and cost-effective childcare support.

How much does it cost to run a scheme?

KiddiVouchers will administer your childcare voucher scheme for a fee of just 2.5% of the vouchers issued. To register for a KiddiVouchers voucher scheme, click here.