EIM21902 - Benefits: exemption for employer supported childcare: summary of changes introduced from 6 April 2005

Section 318 and 318A - D ITEPA 2003

The following tables show the chargeable and exempt childcare provision to and from 5 April 2005.

From 6 April 2005

Childcare provision	Tax	NICs
Workplace nurseries	Exempt	Exempt
Childcare vouchers	First £55 a week exempt (£50 for the tax year 2005 to 2006) then tax chargeable	First £55 a week exempt (£50 for the tax year 2005 to 2006) then liable for Class 1 NICs
Other childcare	First £55 a week exempt (£50 for the tax year 2005 to 2006) then tax chargeable	First £55 a week exempt (£50 for the tax year 2005 to 2006) then liable for Class 1 NICs

To 5 April 2005

Childcare provision	Tax	National Insurance Contributions (NICs)
Workplace nurseries	Exempt	Exempt
Childcare vouchers	Chargeable	Exempt
Other childcare	Chargeable	Exempt

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 1 September following their fifteenth birthday or 1 September following their sixteenth birthday if they are disabled.

Registered or approved childcare only

The childcare must be registered or approved.