Tax free childcare for employees

I read an article recently tax that my employer can provide me with tax free childcare. Is this true?

1st October 2008

Under a scheme introduced in April 2006, employers are able to provide employees with employees with tax and national insurance free childcare under the childcare voucher scheme, and could save each parent upto 1,195 per year, as the current Tax and NI free rate is 55 per week

The scheme operates by providing paper vouchers to employees who can then redeem with most carers registered under the scheme, and in some cases you can even receive a membership card which lets you pay online or by phone.  

If your employer is not willing to provide vouchers in addition to your current salary, you would be advised to consider a salary sacrifice to benefit from the scheme. Your local TaxAssist Accountant will be able to provide more information on this arrangement and how the scheme is operated.

By Jo Nockels

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