Is there a maximum amount of childcare vouchers an employee can take?   
Can I offer employees more than £55 per week?   
What do HM Revenue & Customs need to know about my scheme?   
What do I need to send to HM Revenue & Customs?   
Can anyone apply for childcare vouchers?    
Can employees use any type of childcare?   
What records do I need to keep? 

Is there a maximum amount of childcare vouchers an employee can take? 

Employees can take a maximum of £55 per week, or £2,916 per year in childcare vouchers free from tax and National Insurance contributions. Any amount over this attracts Employer NI and tax and National Insurance for employees.

Back to top

Can I offer employees more than £55 per week? 

It is up to you to decide whether you wish to allow employees to have more than £55 of vouchers per week. But note that any vouchers taken over and above the maximum £55 per week will attract Employer NI. Employees will also have to pay tax and NI on the additional amount.

Back to top

What do HM Revenue & Customs need to know about my scheme?

HMRC need to be satisfied that the scheme you are running complies with the rules of salary sacrifice. You must keep records to demonstrate the following:  

• The scheme is generally available to all employees: Keep a record of the material used to promote the scheme. See HM Revenue & Customs website for more details.

• The child is a qualifying child: Keep a record of the child's date of birth and a note of the relationship between the employee and child. The standard Salary Sacrifice Agreement provided by Sodexho Pass fulfils this function. See HM Revenue & Customs website for more details.

• The childcare is registered or approved: Keep a copy of your scheme rules that includes a requirement for employees to notify you of any change in circumstances in relation to the child or childcare; a record of the childcare provider's name and registration or approval number; a note of when the childcare provider's approval is due to expire. See HM Revenue & Customs website for more details.
  
  Back to top

What do I need to send to HM Revenue & Customs? 

Can anyone apply for childcare vouchers? 

• Childcare vouchers can be used to pay for all children up to 1st September following the child's 15th birthday or 1st September following their 16th birthday if the child is disabled. See HM Revenue & Customs website for more details.

• The employee paying for the child's care must be either the parent or step-parent of the child, or the child lives with the employee and they have parental responsibility for that child. See HM Revenue & Customs website for more details.

• Childcare vouchers must be used to pay for registered or approved childcare. See HM Revenue & Customs website for more details.
  
  Back to top

Can employees use any type of childcare? 

What records do I need to keep?

• The scheme is generally available to all employees: Keep a record of the material used to promote the scheme. See HM Revenue & Customs website for more details

• The childcare is registered or approved: Keep a copy of your scheme rules that includes a requirement for employees to notify you of any change in circumstances in relation to the child or childcare; a record of the childcare provider's name and registration or approval number; a note of when the childcare provider's approval is due to expire. See HM Revenue & Customs website for more details.
  
  Back to top