Summary of Conditions for non-taxable and exempt from National Insurance contributions Childcare Vouchers
- The scheme must be implemented by the employer as deductions are made from payroll
- The scheme must be open to all eligible employees within an organisation
- Employees requesting Childcare Vouchers must be the parent or legal guardian of the child they are requesting vouchers for
- Childcare Vouchers are offered to help pay for childcare of minors up to the age of 16 (up to the 1st September following the child’s 15th Birthday) and for the care of those with special needs up to the age of 16 (up to the 1st September following the child’s 16th Birthday)
- Childcare Vouchers can only be redeemed by registered or approved childcare providers
- Childcare provided by a relative does not qualify for Childcare Vouchers unless the care is provided away from the child’s home and the carer is registered to and is providing childcare to other children
- Please visit www.hmrc.gov.uk for full scheme entry conditions
Other sources of information concerning Childcare Vouchers are:
- ‘E18 (2005) – Employers Help’ Handbook
- IR 115 Childcare provided by Employers
- CWG5 – Class 1A National Insurance Contributions (NIC) on benefits in kind; a guide for Employees