EIM21902 – Benefits: exemption for employer supported childcare: summary of changes from 6 April 2005
Section 318 and 318A – D ITEPA 2003
This chart compares chargeable and exempt childcare provision before and after 5 April 2005.
To 5 April 2005 |
From 6 April 2005 |
|||
| Tax | NICs | Tax | NICs | |
Workplace nurseries | Exempt | Exempt | Exempt | Exempt |
Childcare vouchers | Chargeable | Exempt | First £50 a week exempt then tax chargeable | First £50 a week exempt then liable for Class 1 NICs |
Other childcare | Chargeable | Exempt | First £50 a week exempt then tax chargeable | First £50 a week exempt then liable for Class 1A NICs |
From 6 April 2005, in addition to the new tax exemptions for
childcare vouchers and other childcare, new conditions came into
force that relate to all employer-provided childcare support. These
were:
Availability to all staff
All employees should be able to apply for the childcare being
offered by the employer.
The age of the child
A child qualifies up to 1st September following their 15th
birthday or 1st September following their 16th birthday if they are
disabled.
Registered or approved childcare only
The childcare must be registered or approved.
