Childcare Vouchers

Childcare Vouchers

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Hi,

A client has a member of staff that's just returned from maternity leave and they would like to contribute to her childcare costs by providing a weekly voucher of £55. As she is the only member of staff eligible for the scheme, they would us to administer it along with their payroll.

I know the theory, but am new to the practical side of it all - Is there a template of a childcare voucher or guidance on the details it should include?  Is there a recommended procedure for paying the childcare providers (e.g direct to the provider)? 

Is there anything else that needs to be considered?

Thank you in advance for any help.

C

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By sparkler
06th Nov 2012 22:57

Directly contracted childcare

The simplest and cheapest way to administer the scheme is to provide "directly contracted childcare", i.e. the limited company contracts directly with the childcare provider to contribute £55 per week to purchase a childcare place direct from a registered nursery or childminder.  A simple contract should be drawn up between the childcare provider and the limited company.  The weekly payment can be for any amount up to £55 per week.

Pages 4 and 5 of http://www.hmrc.gov.uk/leaflets/ir115.pdf give a little more information on the subject.

The alternative is to use one of the many childcare voucher providers to administer the scheme, but this will involve a sizeable administration fee each time a voucher is purchased.  Much cheaper to use the directly contracted method.

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