Tax and NI incentives
Employer support for childcare was made easier and worth more financially by new tax and national insurance incentives that were introduced in April 2005. The types of employer support for childcare that benefit from the new incentives are:
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Children playing with sand and water
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childcare vouchers and payments made direct to childcare providers up to the value of £50 per week are free of income tax and national insurance contributions.
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the cost of workplace childcare provision is free of income tax and national insurance contributions up to the full amount it is subsidised by the employer.
To help employers find out about the new incentives, the Inland Revenue has set up an Employers Help Line on 0845 714 3143.Full guidance for employers is on the CD-ROM available from the Inland Revenue Stationery Line on 0845 764 6646 or you can order on-line from
www.hmrc.gov.uk/childcare/|||
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