NIM02440 - Class 1: Vouchers - non-cash vouchers - exemptions - meaning of "child-care" up to 5th April 2005
Regulation 25 and paragraph 7 of Part 5 of Schedule 3 Social Security (Contributions) Regulations 2001
NIM02439 explains that a non-cash voucher (see NIM02413) for child care is disregarded for Class 1 NICs purposes if two conditions are satisfied. For the purposes of this exemption, "childcare" includes:
- care provided in accordance with Part 10 or 10A of the Children Act 1989 (child minding and day care for young children)
- in the case of a child aged 8 or over, care provided by a child minder
- in the case of a child aged under 8, care provided by a child minder where that care does not exceed, in total, two hours a day
- care provided by:
- a "nanny" as defined in section 71(13) of the Children Act 1989. That section provides that a nanny is a person who is employed to look after a child by:
- a parent of the child; or
- a person who is not a parent of the child but who has parental responsibility; or
- a person who is a relative of the child and who has assumed responsibility for their care.
- a "relative" as defined in section 105(1) of the above Act as meaning a grandparent, brother, sister, uncle, aunt or step-parent
- care provided during out-of-school hours or during school holidays
- full-time and part-time care.
Application of this exemption to Northern Ireland
The above definition applies to Northern Ireland with the
following differences:
- in the second bullet above, for "aged 8 or over" read "aged 12 or over"; and
- in the third bullet, for "aged under 8", read "aged under 12".
For details of:
- 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.
