Childcare vouchers
by Sarah
Many employers offer a salary sacrifice scheme for childcare vouchers so that employees can offset their childcare costs out of gross salary. Figures show over 340,000 employees of over 35,000 companies make use of them.
Under Government plans the tax relief and thus the benefit of the vouchers could be scrapped by 2015. This may be a get out clause for employers to scrap the scheme given the recent decision that the vouchers are a benefit which must be continued during maternity leave presenting employers with a hidden cost of the scheme.
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Thanks for reading this blog!!! The scheme helps employers as it provides an added incentive for people to work for them. This scheme is very beneficial for employers.
Alice Thomson said at November 16th, 2009 at 10:48 am
[...] my previous blog on the decision to cut the tax relief on childcare vouchers, the Prime Minister has announced that he will no longer be making the planned changes following a [...]
Childcare vouchers u-turn » PJH Law - Employment Law Blog » Blog Archive said at December 4th, 2009 at 12:10 pm