EIM21902 - Benefits: exemption for employer supported childcare: summary of changes introduced from 6 April 2005
Section 318 and 318A - D ITEPA 2003
The following tables show the chargeable and exempt childcare provision to and from 5 April 2005.
From 6 April 2005
| Childcare provision | Tax | NICs |
|---|---|---|
| Workplace nurseries | Exempt | Exempt |
| Childcare vouchers | First £55 a week exempt (£50 for the tax year 2005 to 2006) then tax chargeable | First £55 a week exempt (£50 for the tax year 2005 to 2006) then liable for Class 1 NICs |
| Other childcare | First £55 a week exempt (£50 for the tax year 2005 to 2006) then tax chargeable | First £55 a week exempt (£50 for the tax year 2005 to 2006) then liable for Class 1 NICs |
To 5 April 2005
| Childcare provision | Tax | National Insurance Contributions (NICs) |
|---|---|---|
| Workplace nurseries | Exempt | Exempt |
| Childcare vouchers | Chargeable | Exempt |
| Other childcare | Chargeable | Exempt |
From 6 April 2005, in addition to the new tax exemptions for childcare vouchers and other childcare, new conditions came into force that relate to all employer-provided childcare support. These were:
Availability to all staff
All employees should be able to apply for the childcare being offered by the employer.
The age of the child
A child qualifies up to 1 September following their fifteenth birthday or 1 September following their sixteenth birthday if they are disabled.
Registered or approved childcare only
The childcare must be registered or approved.