Employer

The qualifying conditions

The qualifying conditions for operating a scheme are as follows:

  • The scheme must be open to all staff. If your business is multi-site, you must offer the scheme to all staff or all staff in a particular location.
  • Registered or approved childcare only – to qualify for the exemption any childcare for which childcare vouchers are used must be registered or approved.
  • Qualifying conditions for the child – a child qualifies up to 1st September following their 15th birthday, or 1st September following their 16th birthday if the child is disabled, and the child must be the child or stepchild of the employee or a child for whom the employee has legal parental responsibility.

The exemption does not extend to :

  • Cash payments to an employee to help with their childcare costs.
  • Paying an employee’s childcare bills on their behalf.
  • Payment of school fees.
  • The provision of childcare or childcare vouchers if the qualifying conditions are not met. The HMRC website provides more detailed information at: www.hmrc.gov.uk/childcare/index.htm