Employer Childcare Vouchers

How do I use the vouchers?

Vouchers can be used in the week or month they are provided, and can also be saved up to use at a later time; such as during school holidays. They can’t be backdated to pay for childcare you have already had.

What does my employer get out of the scheme?

Employers do not pay NICs on the childcare vouchers they provide to staff. This can save your employer up to £373 for each basic rate taxpayer or £190 for each higher rate taxpayer.

It also helps staff have a healthy work life balance and helps companies recruit and retain staff.

What does my childcare provider get out of the scheme?

Your provider claims the funds from the voucher scheme company for the amount of vouchers they have received. The money is then paid directly to the provider’s account and is guaranteed funds once it is received.

Who runs the scheme?

Childcare vouchers can be produced and administered by employers. However voucher provider companies normally run the scheme on behalf of employers.

If you think that childcare vouchers would suit you, or you want to know more, speak to your employer or visit www.familyandchildcaretrust.org/working-parents

This page was last modified: 5th May 2015