The structure to operate the childcare voucher scheme and tax legislation is well established and as long as the critical rules governing salary sacrifice, or salary addition, and voucher issue are adhered to then the system works very well and Revenue approval is pretty much guaranteed. The Revenue will not pre-approve, so simply set up your childcare voucher scheme and you can then inform them you are doing the scheme, it is a purely voluntary requirement and not compulsory to inform them. It is not required to inform them you are doing a salary sacrifice either.

It is important to note that if the rules and procedures are not followed, the employer and employee may be liable for Inland Revenue penalties. Family Vouchers accept no responsibility if you do not conform to the required regulations.

The information that we are linked to is Crown Copywrite and we have not altered or reproduced the information in any way and it is presented in it's original format. Information contained in the links is liable to change without notice.

480 Expenses and Benefits - a tax guide helping parents and employers understand the relationship of a variety of different benefits, remuneration and how they impact on the payment of tax

CWG2 Employers further guide to PAYE (Pay As You Earn / Income Tax) and NIC (National Insurance Contributions)

CWG5 Class 1A contributions and benefits in kind - a helpful guide if you, as en employing company or organisation, provide benefits to your employees

CFS Employers factsheet providing an overview of providing semployer-suported childcare. This includes childcare vouchers, workplace nurseries and childcare from a third party. THe guide also includes a frequently asked questions section along with contact details and links to departments and other guides to help with any more queries

E18 How to help your employees with childcare - a government provided guide to help with supporting working parents by providing wither workplace nurseries / child care, other child care provision and childcare vouchers

Interaction of child tax credits and childcare vouchers - this guide helps you to understand whether you, as a parent, are better off using childcare vouchers or working tax credits.

Tax exemptions are provided by the Government to reduce the tax burden. The following links are to the HMRC website to help understand childcare vouchers and exemptions in greater detail.

NIM 02413 Vouchers - non cash definition

NIM 02416 Vouchers - table of exemptions

NIM 02448 Vouchers - definitions and conditions to be met

NIM 02449 Definitions of terms in 02448

NIM 02450 Definition of a registered childcare provider

NIM 02451 Definition of an approved childcare provider

NIM 02452 Childcare that is unqualified

NIM 02455 Definition of a qualifying week

NIM 02461 The chargeable expense

NIM 02471 How to calculate the exempt amount - the general rule and showing how to 'bank' your allowance

NIM 02472 How to calculate the exempt amount - the modified rule

NIM 02473 Shows the application of 53 weeks to 2006/7 tax year and this is the same for 2007/8 onwards

Government information pack in the form of a HMRC salary sacrifice PDF. HMRC guidance and faqs for employers and employees on salary sacrifice. The information provided on salary sacrifices cover their interaction with other forms of non-cash benefits, cash benefits and allowances including statutory maternity pay, statutory sick pay, job seeekers allowance, state pensions, working tax credits, child tax credits, maternity allowance, incapacity benefits, and other income-related benefits.

Understanding the difference between child tax credits and childcare vouchers is important in understanding how to reduce childcare costs. Tax credits are essentially a form of benefit for young persons and working parents depending on their personal circumstances. Learn how you can start claiming child tax credits. Child tax credits are one benefit that the Government provides, but childcare vouchers also offer flexible benefits to help working parents too.

Childcare vouchers are offered to working parents as part of a Government salary sacrifice agreement with their employer, to help them pay for childcare whilst benefiting from a tax-free amount. Parents with children up to the age of 16 can receive tax saving benefits to pay for childcare, whether it be after-school care, nursery, day care, an au pair, nanny or other registered form of childcare. Both parents can financially benefit from the childcare vouchers.

Understanding the difference between child tax credits and childcare vouchers is important in understanding how to reduce childcare costs. Tax credits are essentially a form of benefit for young persons and working parents depending on their personal circumstances. Learn how you can start claiming child tax credits. Child tax credits are one benefit that the Government provides, but childcare vouchers also offer flexible benefits to help working parents too.

Childcare vouchers are offered to working parents as part of a Government salary sacrifice agreement with their employer, to help them pay for childcare whilst benefiting from a tax-free amount. Parents with children up to the age of 16 can receive tax saving benefits to pay for childcare, whether it be after-school care, nursery, day care, an au pair, nanny or other registered form of childcare. Both parents can financially benefit from the childcare vouchers.

IR115 - Guidance for employees and childcare provisions by employers including childcare vouchers, directly contracted-out childcare and workplace day-care or nurseries. The IR115 document also provides information on different types of suppport for parents by their employers, definitions of different forms of childcare such as approved and registered care, and help with finding childcare providers.