help4mums.com - Childcare Vouchers

From 2001, in support of working parents, the Government introduced a number of measures including a tax-efficient way of paying for childcare that can be offered to employees by their employers. The aim of the legislation was to enable parents to save tax and National Insurance Contributions on the first £243 of their childcare costs. The intention was to increase the number of working parents returning to work after starting a family and to assist them with the financial responsibilities of obtaining childcare.

Many employers now offer this benefit because it is popular and as it directly assists in the retention of key talent. One of the biggest difficulties that parents face in particular is the cost of childcare but with the childcare voucher scheme, they can "sacrifice" a proportion of their gross salary and this can be used to pay for childcare. As this is taken from gross salary, the parent does not pay income tax and National Insurance Contributions on the first £243 of sacrificed salary. The savings currently achieved will depend on the rate of tax and National Insurance Contributions, but basic rate taxpayers can save £903 a year and higher rate taxpayers could save up to £1,195!

In recent months there has been considerable coverage in the media of Gordon Brown's intention to remove the legislation that gives this tax break, however, following strong opposition to the news and consultation with several childcare voucher providers, the foreseeable future of the scheme is safe, although the Government do intend to equalise the benefit for Higher and basic rate taxpayers for people joining the scheme after April 2011. care-4 has always worked closely with HMRC when offering tax efficient schemes and will continue to do so, so that changes can be communicated to all parties as soon as they are announced.

Launched in February 2002, the care-4 scheme was the first electronic scheme of its kind providing a simple and effective childcare voucher programme solution to employers and their employees. The product was designed with the whole range of users in mind and is continually enhanced to ensure that it remains the UK's leading childcare voucher benefit.

care-4 provides employees with an intuitive, informative, electronic childcare voucher benefit which is accessible online and by telephone - either through a care-4 agent or via the IVR line. care-4 manages all aspects of the scheme on behalf of the employer and offers employees a variety of additional benefits such as a confidential Childcare Helpline and access to Emergency Childcare.

For further information on how employers can join the care-4 scheme, please visit www.care-4.co.uk and complete either the "Contact Us" or "Transfer to care-4" form. Alternatively, employers can telephone the Employee Benefits Team on 01442 829400.