Childcare vouchers are a government-led initiative to encourage employers to help employees with their childcare costs. They can be used for nursery care as well as to fund activities for a much wider age-range, such as after-school clubs for older children or even summer camps.
The new figures obtained by Sodexo Motivation Solutions make for sobering reading. Higher rate and additional rate tax payers will see their savings almost halved, from £1,195 to £623 and £606 a year respectively if they fail to sign up.
Iain McMath, managing director of Sodexo Motivation Solutions, explains:
“Employees who sign up for a scheme before 6th April will not be affected at all by these changes. Their current level of tax savings will remain the same unless they leave the scheme or are no longer eligible to participate. Childcare vouchers are a vital benefit for many parents and employees and businesses alike need to make signing up a high priority. The change is happening in days, not months, and parents must sign up now before it’s too late.”
