Important Changes to the Childcare Voucher Scheme from April 2011
Due to a change in Government legislation, employees who join the childcare scheme from the 6 April 2011 will be limited to the equivalent of the basic rate on the amount of tax saving. The purpose of this change is to make the amount of tax saving the same for all employees regardless of their rate of tax. If you have already joined the Scheme on or before 5 April 2011, you will not be effected by these changes.
Do you want to save money on childcare costs?
The School uses Compuershare to provide and administer the provision of childcare voucher scheme. This scheme is designed to save you money on the cost of your childcare.
The scheme applies to all members of staff and can be used to pay for any registered childcare provision, whether this is a child minder, after school club, day nursery, nanny, family member or the care element of boarding fees.
Members of staff can 'exchange' or sacrifice part of their salary in return for childcare vouchers. Tax and National Insurance contributions are not taken on the amount of the salary sacrificed - this means a saving of up to £75.00 per month if you sign up to the scheme.
KidsUnlimited voucher scheme
Frequently asked questions (FAQs)
Who does it apply to?
How does it work?
How long do I have to sign up for?
How do I start?
1. What is it?
The Computershare scheme provides a way of enabling members of staff who are parents to pay the costs of their childcare before paying tax and National Insurance contributions, thereby helping parents save money on the costs of childcare.
2. Who does it apply to?
If you are paying on a monthly basis for childcare such as after school clubs, nannies, child minders, holiday play schemes, day nurseries or even relatives, it is likely that you will be able to save money by signing up to the scheme.
Childcare vouchers can be used for any registered childcare provider for children aged 0-15 years or 16 years if your child has a disability.
3. How does it work?
Parents can choose to 'exchange' part of their salary in return for childcare vouchers, thus reducing the amount of salary on which tax and National Insurance contributions are made. See below in relation to setting this up.
Once this has been arranged, the agreed amount will be deducted from your salary and your carer will be paid directly by Computershare.
You do not have to change your childcare arrangements in order to sign up for the scheme.
4. Will the childcare element of my Working Tax Credit be affected?
It could be, but it may actually be in your favour. Tax Credit is worked out on your total taxable income, and as you receive less of it when you make your salary sacrifice, your WTC could actually go up.
However, your Computershare Childcare vouchers benefit means you'll be paying less in real terms for childcare and this might have the effect of lowering the amount you can claim in the childcare element of WTC.
For more information regarding WTC see Tax Credits Online or call the helpline on 0845 300 3900
5. How long do I have to sign up for?
You can sign up to the scheme for 3, 6, 12 months or for an 'indefinite' period of time. To leave the scheme you need to provide Computershare with 1 month's notice.
6. How do I start?
If you are ready to join scheme, simply follow the steps below. Ensure that you have read and understood the terms and conditions of the agreement and send your completed contract amedment form to Dominic Burchnall (HR Adviser).
Sign up via the Computershare website. The employer security code is 0019229569.
Print and complete the amendment to contract of employment form and return this to Dominic Burchnall.
7. Who should I contact if I need more information?
If you are unclear about any of this information or would like further information, please contact Computershare.