Introduction to this document

Sample childcare voucher

Where you offer your employees childcare vouchers as a benefit in kind, you can use a childcare voucher company to administer the scheme and provide the vouchers. Alternatively, you arrange childcare direct with registered childcarers and produce your own vouchers for employees to redeem.

Tax-free vouchers

The first £55* per week of childcare vouchers that you give to an employee is both tax and NI free for those who joined the scheme before April 2011. Use our Sample Childcare Voucher as a template for your own vouchers. The employee can use the vouchers to pay for approved childcare, e.g. a registered childminder. They give the voucher to the approved childcarer who then sends it to you to settle.

Note. The £55* limit is per parent not per child so if both parents work in the same company, they can receive up to £110 a week tax free (via separate vouchers).

*For those users who joined the scheme from April 2011, the weekly tax and NI free amount has been reduced to £28 and £25 per week for higher and additional rate taxpayers respectively.