The provision of Childcare Vouchers as an employee benefit offers an employer and employee the opportunity to save up to £1,500 a year in PAYE tax and National Insurance Contributions. This is because Childcare Vouchers of up to £2,916 pa (strictly £55 per week) may be provided to employees free from PAYE tax and NIC.

By having an employee swap part of his or her normal salary (which is subject to PAYE tax and NIC) for Childcare Vouchers, both the employer and employee will benefit financially.

As well as providing employment tax advice about the use of Childcare Vouchers, NW Brown & Company Ltd's Employee Benefits division runs its own Childcare Voucher service. The administration charges for this service are considerably lower than the charges levied by many other Childcare Voucher providers.

Some of the typical questions and issues around Childcare Vouchers include:

• Why is the Government being so generous?
• Why should an employer consider using childcare vouchers?
• What should an employer think about in looking at childcare vouchers?
• Can an employer set up its own childcare facility?
• Is there an alternative to Childcare Vouchers?
• What if the childcare provider offers its own Childcare Vouchers?
• What if an employer has only a few employees?
• What if an employer has a large number of employees?
• What is a “salary swap?

Please read our Employer Guide, our Employee Guide and our FAQs for greater detail.

There is plenty of further information available on the Internet and from Government Departments, notably Her Majesty's Revenue and Customs (HMRC).

If you would like to discuss using our Employee Benefits Childcare Vouchers or if you want employment tax or employee benefits advice about the subject, please email us at employee.benefits@nwbrown.co.uk or call us on 01223 357 131.

Alternatively you can download the Childcare Voucher application form here.