NIM02439 - Class 1: Vouchers - non-cash vouchers - exemptions - childcare up to 5th April 2005

Regulation 25 and paragraph 7 of Part 5 of Schedule 3 Social Security (Contributions) Regulations 2001

NIM02416 shows the types of non-cash voucher (see NIM02413) that are specifically disregarded in calculating an employee's earnings for Class 1 NICs purposes. Since 6th April 1999, a non-cash voucher provided for the costs of child care is disregarded so long as:

• the child is under age 16;
• the employee has parental responsibility for the child.

For details of:

• the meaning of "childcare" for the purposes of this exemption, see NIM02440
• the NICs disregard from 6 April 2005, see NIM02445 (contents)
• the tax exemption from 6 April 2005, see EIM16057-EIM16059. Note that, for tax purposes, this type of voucher is not exempt from income tax up to 5 April 2005.