What are Childcare Vouchers?
- Childcare Vouchers are a tax efficient scheme to provide working parents with tax free funds towards paying for childcare.
- Every working parent is entitled to use between £97 and £243 per month tax free from gross salary towards their childcare costs in the form of Childcare Vouchers.
- For every employee that joins the scheme the employer saves on average over £300 per year in National Insurance contributions.
- The funds are collected from gross salary by the employer and sent to kidsunlimited, who will process and pay them over to the employee's nominated childcare provider.
- Vouchers can be used for children aged 0-15 years, (or 16 years if their child has a disability) to pay towards registered : nurseries / playgroups and pre-school / childminders / after-school and breakfast clubs (wrap around care) / holiday play schemes/ nannies and certain elements of private school fees.
Savings for the Employer
| Number of your employees using vouchers | 1 | 5 | 25 | 50 | 100 | 200 |
|---|---|---|---|---|---|---|
| Estimated Employer National Insurance Annual Savings | £331 | £1,656 | £8,280 | £16,560 | £33,120 | £66,240 |
kidsunlimited charge a small fee for administration and the provision of quality promotional material to drive employee engagement in this valuable benefit - this fee is easily covered by the employer NI savings and you will still benefit from substantial net savings.
Savings for the Employee
| Basic Rate Tax Payer | Higher Rate Tax Payer | Additional Rate Tax Payer | |
|---|---|---|---|
| Weekly Contribution | £55 | £28 | £22 |
| Monthly Contribution | £243 | £124 | £97 |
| Annual Savings | £933 | £623 | £606 |