Childcare vouchers and the benefits to you

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Childcare vouchers and the benefits to you
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• We are introducing a Childcare Choice voucher
  scheme.
• The following presentation explains how the
  scheme works and how it can benefit you.

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What is a childcare voucher scheme?

• The childcare e-voucher scheme chosen enables you
  to take part of your salary as e-vouchers which
  you use to pay for childcare in return for a
  financial gain.
• E-vouchers are tax and NI exempt up to 55 per
  week or 243 per month which means that any
  employee joining the scheme will make significant
  savings on their childcare costs.

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Why e-vouchers?

• E-vouchers allow you to make payments to your
  carer at dates and times convenient to you via
  your personal online e-voucher account.

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How much can I save?

• You will save up to 1,195 per annum.
• (Savings are dependent on the amount of vouchers
  you take, as well as the level of income tax and
  National Insurance that you pay).

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Can my current carer acceptChildcare Choice
vouchers?

• E-vouchers can only be used to pay for registered
  and approved childcare.
• There is absolutely no cost to your carer.
• Payment is made by electronic (BACS) transfer
  directly into your carers bank account via your
  personal online account.
• An information leaflet explaining the scheme to
  your carer is available.

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When do I receive my Childcare Choice vouchers?

• E-voucher funds will be paid into your online
  account on payday.

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How Childcare Choice works
Sodexho Pass credits employees e-voucher account
Employee orders vouchers via employer
Carer paid directly into their bank account
Employee pays carer on-line
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Is there a limit to the amount of vouchers I can
have?

• The amount of vouchers you can elect to take is
  tax and NI exempt is capped at 55 per week (243
  per calendar month).
• You should not reduce your salary to less than
  421 per month - this is to ensure you always pay
  the minimum amount of NI on which a number of
  state benefits including Statutory Sick Pay are
  dependent. Your salary should also not go below
  the National Minimum Wage.

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• Will my overtime be affected?
• No. Generally all work benefits including
  overtime are calculated on your gross salary.
  Check with your scheme administrator.
• What about my pension?
• Company pension schemes generally accept
  childcare vouchers as notional pay, i.e. as part
  of salary - so your pension is unlikely to be
  affected. Check with your scheme administrator.

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Can I leave the scheme at any time?

• To qualify for the NI savings you must stay in
  the scheme until the renewal date.
• Under exceptional circumstances such as a life
  changing event e.g. divorce, separation,
  marriage, birth, death or pregnancy, you can
  leave the scheme subject to employer approval.
• (Any other circumstances can be discussed on an
  individual basis with your HR contact).

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How do I join the scheme?

• To register for the scheme and to take advantage
  of the tax and NI exemption you will be invited
  to apply for a childcare voucher account online.
• My partner and I both work here.
• Can we both join the scheme?
• Yes. You will both need to register online
  and you can also apply for a Family Account to be
  set up for you whereby both your childcare
  vouchers are credited into a joint e-voucher
  account.

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Registering for the scheme

• You will be invited to register for childcare
  vouchers with details of the company account we
  hold with Childcare Choice. With these details
  you can register both yourself and your carer
  online.
• Each person applying for vouchers must complete a
  Salary Sacrifice form.
• You must also ensure that if your carer is not
  already registered with Sodexho Pass, the scheme
  operators, that your carer completes a Carer
  registration form. This is available online and
  allows Sodexho Pass to process payments to their
  bank account. This form must be returned to
  Sodexho Pass with a copy of the carers
  registration/approval certificate.

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All bands of tax payers can benefit from
Childcare Choice vouchers.

• You will be able to request to take up to 55
  worth of salary as vouchers each week (243 per
  month). This amount will be both tax and NI free.
  Savings on childcare costs are significant.

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Example of Savings

• (non-contracted out of S2P)
• Employee takes 243 per month (capped amount of
  55 per week)
• 22 tax payer saves 962 per annum
• 40 tax payer saves 1,195 per annum
• (contracted out of S2P)
• Employee takes 243 per month (capped amount of
  55 per week)
• 22 tax payer saves 915 per annum
• 40 tax payer saves 1,195 per annum

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• For further information on how to apply
• for Childcare Choice vouchers please contact your
  Line Manager.