I've recently moved to a new company, and one of the employees wants to waive some of her salary and have childcare vouchers instead. It's been about 6 years since I last operated a childcare voucher scheme, maybe more, so I'm a bit rusty.
The employee had childcare vouchers with an older child (starting in 2013), stopped them while on maternity leave, and now wants to start them again.
I think – based on what I did years ago – I need to draw up an agreement to formally waive part of her salary; make arrangements to provide vouchers via a childcare voucher provider; and have her payslip show the post-salary-sacrifice amount as the gross, with no mention of the childcare deduction on the payslip. As she is a basic rate tax payer, I think she is entitled to a maximum of £243 per month.
However, the previous arrangement had no formal documentation of the waived salary; the money was paid directly to the childcare provider; the payslip showed her full gross and then a deduction for the childcare; and she was limited to £124 per month which she says she was told was the maximum she could have.
So I guess I'm looking to be put straight (if the running of these schemes has changed since I last received advice), or reassured that I am right (if I am) before I set it up.
Thanks for reading and for any advice.