|
Childcare Vouchers are becoming extremely popular as more employers see them as
a cost-effective benefit to attract and retain valuable employees. In
principle, the scheme appears easy enough - you offer your employees £55.00 per
week of vouchers, they save on PAYE and NI (and possibly pension) and you save
on Employers NI. However, there are several pitfalls to the scheme that
APS can help you with. Our Childcare Voucher Scheme ensures that all employees
are eligible for the scheme in advance. Did you realise that if the value
of the vouchers takes an employee to below the minimum wage they cannot receive
the vouchers? Did you also realise that some employees in receipt of tax
credits may actually be worse off in receiving the vouchers? We can guide
your employees to relevant information so they can make an informed decision
about whether Childcare Vouchers will actually benefit them.
We also take care of the Salary Sacrifice Scheme, writing to HMRC on your
behalf to confirm the details of the scheme (this cannot be done in advance),
providing the relevant changes to the terms of employment, and vetting all
childcare providers, ensuring they are correctly registered and approved.
We maintain a database of all providers and ensure that their registration is
updated annually before paying vouchers.
The way the scheme works if you are not a payroll client of ours is we would
provide you with details of how to administer the scheme through your own
payroll system. You would send us a list of the employees in the scheme,
and pay the value of the required vouchers to us. We then issue the vouchers to
your employees (each voucher with an individual serial number) who use these to
pay their childcare provider. The Childcare provider then sends the
vouchers to us and we pay the provider directly.
The price we charge for administering the scheme is 2.5% of the value of the
vouchers plus 50p per employee for non-payroll clients and 25p per employee for
existing or new payroll clients.
Childcare vouchers are an excellent benefit for your staff. Can you
afford to not provide them? |