childcare partners
vouchers

Money given up in a Salary Sacrifice scheme can be used to provide employees with Childcare Partners Vouchers that can be exchanged for most types of childcare provision. This not only includes nursery places, but also registered childminders and, from April 2005, approved home care.

Voucher schemes are easy to set up and administer. The employer only pays for the vouchers they need as they need them, has no start-up costs to worry about and is not exposed to any financial risk or long term commitment. The employee has the flexibility to choose the childcare that most suits their needs.

Childcare Vouchers are currently exempt from National Insurance contributions but not tax. This doesn’t affect the employer’s savings, but it does mean that employees benefit less than they would from a workplace nursery scheme. From April 2005 this will change so that employees will be exempt from both tax and National Insurance contributions, but the exemption will be capped at £50 worth of vouchers per week per employee.

Because Buffer Bear is part of the Childcare Partners organisation you can get priority for places at its nurseries.
 
Calculator for employee + employer tax / NI benefits»
Please click here to email Bethan Parry at Buffer Bear for a password to access the calculator spreadsheet
 
 
 
pros...
• Employees have a wide choice of
childcare options
• Schemes are easy to set up and
administer
• Negligible risk for the employer
• Both parents can benefit if both their employers participate
cons...
• Employee benefit capped at £50/week regardless of number of children
• Employers have no control over the
quality of the childcare provided
 
comment
Where Buffer Bear nurseries are conveniently located, the Fee Direct @ Buffer Bear Nurseries scheme undoubtedly offers the greatest benefits in tax and NI for both employer and employee. In areas where there are no Buffer Bear nurseries Childcare Partners Vouchers is the simple scheme to allow employers and employees to make tax / NI savings. Dr Kay Turner, MD of Buffer Bear Nurseries, comments,

“The tax and NI benefits of Childcare Partners Vouchers mean that each parent saves about
£ 850 p.a. or more on their childcare costs. And the employer saves on NI contributions too”.
 
 
 
   
 
 
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