The increased opportunity to save tax and National Insurance on childcare arrangements introduced by the Government this month is exciting a lot of interest from employers and employees alike.

What does it mean?

In essence the scheme allows parents to buy vouchers from their employers to be used to purchase qualifying childcare arrangements. The benefit is that these vouchers can be purchased tax free, saving both employee and, if operated through a salary sacrifice scheme, employer money.

This is very much a good news story. However, it is important that individual employees thinking about taking advantage of this new scheme also check how it might affect their overall situation by taking account of any childcare tax credits they may stop receiving if they decide to go ahead.

Want more information?

For more information on childcare vouchers or a discussion about your individual situation, please contact Campbell on 01494 435310 or email campbell@hradvantage.co.uk

April 2005