Many employers support their staff with their childcare needs, including providing financial assistance or on site childcare services. Since April 2005, employers have been able to offer staff financial support that is exempt from tax and National Insurance Contributions. The amount currently exempt from these contributions is £55 per week or £243 per month. (It is also possible to receive increased exemptions on workplace childcare.) This support can be provided in three ways:
All forms of employer-supported childcare have specific conditions that must be met by both you and your employer. Information is available in the relevant sections below and also in our factsheets. You can also contact our Information Line if you would like to speak to someone about how your employer can support you with your childcare.
There are two ways that you employer can offer you support with your childcare, either as a benefit offered in addition to your cash salary – salary plus or by you reducing your cash salary and receiving instead an amount towards your eligible childcare costs - salary sacrifice.