What is available?

• From next month employers will be able to provide every employee with childcare benefits of up to £50 per week, that's £2,600 a year, entirely free of tax and National Insurance
• Childcare is widely defined to enable as many working parents as possible to benefit. It refers to registered childcare and includes nurseries and play-schemes, as well as nannies and child-minders, even in your own home so long as the carer is not a relative. It's not only pre-school children; children at least up to age 15 can have qualifying childcare such as, for example, after-school clubs
• As the employer you do not have to arrange the childcare . You can simply provide childcare vouchers and the voucher provider will take care of most of the administration of a childcare scheme that you implement
• As the employer, it need cost you nothing . Many employers are setting up Inland Revenue approved salary sacrifices, where the employee reduces their pay and in return receives vouchers. As payroll costs reduce, you also save National Insurance which can be used to pay the voucher provider's fees
• Your employees can gain over £1,000 tax back a year . As they replace taxable cash with tax free vouchers they save tax and National Insurance. Those paying tax at the higher rate save over £1,000. Those paying tax at basic rate still save £850 per year.

How can HR Advantage help?

With the expertise of Richard Webb, an independent tax advisor, we have been helping a number of employers evaluate and implement schemes to provide valuable benefits to employees, at no cost to their business and to help keep them at the leading edge of the employment market. We'd be delighted to use our technical and practical experience to assist you in putting a childcare voucher scheme in place for your business.

For more information or a discussion about your needs, please contact Campbell Ritchie on 01494 435 310 or email campbell@hradvantage.co.uk

Reminder ? Increase in SMP, SPP, SAP and SSP Rates

Just a reminder that from the 6th April 2005, new standard rates for statutory maternity, paternity, adoption and sick pay will apply. There will be an increase in maternity, paternity and adoption pay from £102.80 to £106.00 per week. There will also be an increase in the earnings threshold from £79.00 to £82.00. The statutory sick pay rate will increase from £66.15 to £68.20.

Call Laura on 01494 435 310 or email laura@hradvantage.co.uk for more information about these statutory payments

March 2005