NIM02446 - Class 1: Vouchers - non-cash vouchers - exemptions - qualifying childcare vouchers from 6th April 2005 - introduction

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. From 6 April 2005, a qualifying childcare voucher of up to £50 (£55 from 6th April 2006) per qualifying week per employment can be disregarded.

For the meaning of:

• “qualifying childcare voucher”, see NIM02447 (contents)
• “qualifying week”, see NIM02455.

For details of:

• how to calculate the exempt amount, see NIM02470 (contents).
• the childcare voucher disregard up to 5th April 2005, see NIM02439
• the tax exemption for qualifying childcare vouchers from 6th April 2005, see EIM16057- EIM16059. Note that, for income tax purposes, an employee is only entitled to one £50 (£55 from 6th April 2006) exemption per qualifying week irrespective of the number of employments they have.