Paying For Childcare

Will my employer be able to offer financial support for my childcare?

Some employers are prepared to offer financial support when it comes to paying for the cost of childcare, but the secret here is to check with them nice and early to see what support they do have on offer. For example, if I offer a workplace creche or nursery, there's often very long waiting lists and limited space. So check with them nice and early about childcare and financial help.

What are childcare vouchers?

Childcare vouchers are a scheme which allow you to use a voucher to pay the cost of private childcare elsewhere. You can deduct part of your salary and use that to pay for the cost of the childcare vouchers, which you can then take to a separate nursery and use to offset the cost.

What is the criteria to apply for a childcare voucher?

The criteria for qualifying for a childcare voucher is to have a child under the age of 15, or a disabled child under the age of 16.

What is a salary sacrifice?

A salary sacrifice is a way of paying for your child care vouchers. It means that the cost of those childcare vouchers is deducted from your salary for a sacrifice before tax and national insurance is calculated.

Do I pay tax on salary sacrifice?

You don't pay tax on a salary sacrifice because it's deducted from your salary before the cost of tax and national insurance is calculated.

What is workplace childcare provision?

Workplace childcare provision is a form of childcare provided by an employer either on site in the workplace or at a private nursery elsewhere. It is subsidised childcare -- the cost is subsidised by the employer.

Is the cost of workplace childcare provision exempt from tax?

The cost of workplace childcare provision is exempt from tax, and any employer contribution toward it is exempt, and any salary sacrificed or used to pay for the cost of it is also exempt.