The Government Close Childcare Vouchers Scheme to New Entrants on the 4th October 2018Unfortunately, the Government closed the Childcare Vouchers scheme to new entrants on 4th October 2018. This means that if you’re a parent looking to join Childcare Vouchers for the first time, or an employer looking to start a scheme in your business for the first time, that option is no longer available to you.
Employer Scheme Overview
New government legislation introduced on 6th April 2006 allows employees to save up to £933 per year on their childcare costs. This is made possible by the employer supplying vouchers to their employees and deducting the voucher amount from the employee's gross pay before tax, in the form of a salary sacrifice.
The scheme is quick and easy to set up and administer and comes to you from Rascals, a company set up by professionals from the childcare voucher industry. The cost is minimal and more than offset by the savings in employer's NI contributions. Childcare vouchers and their administration cost can also be offset against Corporation Tax.
You can register for the service immediately, online, using the Employer registration page. The system is fully automated and instructions are provided at every stage to make it easy for you to administer and issue electronic vouchers. The system will allow you to invite your employees to join the scheme automatically.
11% of employees leave their job in order to have or look after children*. Doesn't it make sense to look after your most valuable commodity - your people?
Introducing a childcare voucher scheme not only helps alleviate childcare issues, but also saves you money. Rascals childcare vouchers means that you save on Employer National Insurance (NI) - saving £402 per employee per year (depending on the rate of NI and value of vouchers ordered). Employees also save substantial amounts of money as childcare vouchers are exempt from tax and NI contributions up to £55 per week, meaning employees can save up to £933 per year.
Rascals childcare voucher scheme is an online scheme offered over the Internet in an easy to use and cost-effective format.
To find out more, simply click on any menu options or click here to join.
* Source: CIPD Recruitment, Retention & Turnover, 2005
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