SE21687 - Benefits: childcare
If an employer provides employees with help with childcare the
provision will normally give rise to a tax charge on the employees
concerned. Note though that there is a special exemption which
applies to certain workplace nurseries for 1990/91 onwards (
SE21900 onwards).
The following table sets out the ways in which childcare
assistance might be provided, and the way in which Schedule E
liability will arise in each case.
| Nature of provision | Section of ICTA88 | Relevant instructions |
| All directors and employees whatever their rate of pay | Employer pays a cash allowance to help with childcare expenses | Section 19 |
| SE05100 | Employer pays the fees of a nursery or childminder engaged by the employee | Section 19 |
| SE00580 | Employer reimburses childcare expenses to employee | Section 19 |
| SE00520 and SE00590 | Employer provides vouchers which employee can use to pay for childcare | Section 141 |
| SE16000 to SE16220 | Directors and employees within Part V Chapter II | |
| Employer provides a nursery or childminder to look after employees' children | Section 154 | SE21101 |
| Exemption for certain work-place nurseries | Section 155A | SE21900 |
