Employee
Why use Childcare Vouchers?
The tax and National Insurance contributions (NICs) rules for employer-supported childcare changed on 6 April 2005. Exemptions were introduced to encourage more employers to help their employees with their childcare responsibilities.
The current tax and NIC exemption in 2006/2007 for employees who receive childcare vouchers as part of their salary is £55 per week (£243 per month). This could mean annual savings of up to £962 for a basic-rate taxpayer or £1,195 for a higher rate taxpayer.
Childcare Vouchers (Wales) operates a simple electronic voucher scheme which is easy to use by employers, employees and carers alike. We do not supply paper vouchers or operate employee online accounts. We simply pay your nominated carer the amount of the vouchers taken, on or around the first working day of each month.