Childcare Vouchers

Childcare Vouchers are one of the ways in which employers can help their employees with the cost of childcare. Childcare Vouchers are exempt from National Insurance Contributions (NICs) and Income Tax for employees  up to the value of £55 per week, which can mean savings of over £2000 a year for a couple who are both working, so they are well worth looking into.

How does a Childcare Voucher Scheme work?

Your employer needs to sign up to a Childcare Voucher company and pay that company an administration fee for their service. The voucher company then either supplies you directly with your vouchers or provides your employer with them, which they then distribute to staff accordingly.  Employees can use the vouchers to pay their nanny and the nanny redeems the value of the vouchers from the voucher company, usually by direct payment into their bank accounts.  

How do Childcare Vouchers save me money?

Childcare Vouchers are usually offered as a salary sacrifice which means that you sacrifice a specific amount of your salary and instead receive that amount in vouchers.  The first £55 per week in vouchers will be exempt from tax and NICs, as you will only pay tax and NICs on your reduced salary - this can offer savings of over £1000 per earner.

Can I use childcare vouchers to pay my nanny?

Childcare Vouchers can be used to pay your nanny provided the nanny is approved through the Ofsted Childcare Register (OCR).  The nanny also needs to register with the voucher company to reimburse the value of the vouchers he/she receives - there's no cost to the nanny in receiving payment this way.

The approved nanny scheme is run by Ofsted.  The nanny must apply for his/her application form directly through Ofsted either online at www.ofsted.gov.uk or by calling 08456 404045.

In order to obtain approval the nanny must have:

1. a recognised childcare qualification

2. an enhanced CRB disclosure through Ofsted

3. an up to date first aid certificate

4. public liability insurance

The current application fee is £100 and this includes the CRB disclosure.

If you have any questions please email theteam@nannyshare.co.uk or go to www.ofsted.gov.uk or call 08456 404045