Childcare Vouchers give you the opportunity to sacrifice a proportion of your salary in return for vouchers that can be used to pay for nursery fees, child minders or breakfast & after school clubs. The vouchers can even be used on some summer holiday activities and with OFSTED registered tutors. Vouchers can be issued to you via an online account, which can be set up to pay your provider directly or allow you to manage payments. A paper voucher is also available.
Further to our ongoing communications regarding the roll out of the new Tax-Free Childcare Scheme (TFC), you will already be aware that the existing Employer Supported Childcare (ESC) voucher scheme was due to close to new joiners on the 5th April 2018.
However, following a debate in the House of Commons, Education Secretary Damian Hinds made the concession to extend the closure of the ESC scheme by six months.
HMRC have confirmed on their My Choices website - https://www.childcarechoices.gov.uk/ that the ESC scheme will now remain open to new joiners until 4th October 2018.
There can be implications for taking family friendly leave (including maternity, adoption, shared parental leave) in a salary sacrifice scheme. These implications can include: effect on calculation of pay; and eligibility to remain in the scheme during such leave when in reduced pay and/or on unpaid leave.