SE21920 - Benefits: exemption for workplace nurseries – joint provision with other employers – further conditions

Section 155A (2) and (5) ICTA 1988

For the exemption for “workplace” nurseries to apply (see SE21900) there is an alternative to the “employer’s premises” test (see SE21915). The purpose of the alternative is to allow small employers, who might not be in a position to afford or manage a nursery on their own premises, to club together with other employers to finance and manage a childcare facility. Childcare provided under such a joint facility qualifies for exemption if:

• the three bullet points at SE21915 are satisfied and
• the care is provided under arrangements made by persons who include the employer and
• the care is provided on premises made available by one or more of those persons (who may or may not include the employer) and
• the employer is wholly or partly responsible for financing and managing the provision of the care.

The premises can be made available in any of the ways mentioned at SE21915.

See SE21925 for the meaning of responsibility for management and SE21930 for the meaning of responsibility for financing.

• 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).