Making childcare more affordable.
The Government are trying to encourage working parents by helping them with the cost of their childcare. The Salary sacrifice scheme enables parents to take a part of their salary on a tax and National Insurance Contribution free basis as childcare vouchers.
From 6 April 2006 parents can take up to £55 week (£243 per month) tax and NIC exempt childcare vouchers from their salary, offering parents great savings on the cost of their childcare. Typically a basic tax ratepayer can save up to £962 per year and a high tax ratepayer £1195 per year.
Employers can save money also as they do not pay NIC on the amount sacrificed by the parent.
Introducing a childcare voucher scheme like the Childcare Account has benefits for parents, employers and carers.
Joining and administering the scheme is easy.