SE21910 - Benefits: exemption for workplace nurseries – meaning of childcare

Section 155A ICTA 1988

For the purpose of the workplace nursery exemption (see SE21905), “care” includes any form of care or supervised activity, whether or not it is provided on a regular basis. It does not include supervised activity which is provided primarily for educational purposes. The presence of some educational input does not preclude exemption.

The exemption will therefore extend to care provided in nurseries, creches and play schemes, including those which operate only during school holidays, as long as the statutory conditions are met. It will not extend to care provided for children attending nursery schools or preparatory schools. However, such schools can still provide qualifying facilities for their own staff.

• Remember that the exemption does not apply at all if the employee is chargeable under Section 19(1)1 ICTA 1988 because the childcare has been paid for out of their emoluments or the childcare represents an application of the employees emoluments (seeSE21900).