Childcare Vouchers & Nursery Provision
• Payroll Giving - deductions made from pay by the employer and passed on to the nominated charity through an agency. The deductions are made before calculation of PAYE thereby giving tax relief at source. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS From 6th April 2000 (for a period of four years) payroll giving donations were supplemented by 10% (government funded). Payroll Giving - Tax Free Limits 1993/1994 to 1999/2000 Year Gift Aid Payroll Giving Minimum Threshold Effective Date £ £ 1993/1994 900 250 16/03/1993 1994/1995 900 250 1995/1996 900 250 1996/1997 1,200 250 1997/1998 1,200 250 1998/1999 1,200 250
1999/2000
1,200
250
2000/2001
Thresholds abolished
Future developments From 6th April 2014 the deadline for passing payroll giving deductions to the destination charity is reduced to 35 days (was 60). No printing, copying or reproduction permitted. CHILDCARE VOUCHERS & NURSERY PROVISION Prior to April 2005 unlimited National Insurance relief for both employee and employer was available for the employer provision of childcare vouchers or a workplace nursery. From April 2005 employers were able to pay up to £50 per week (£217 per month), or provide vouchers to the same value, towards childcare costs incurred by an employee, free of tax and NICs. From April 2006 the exempt amount was increased to £55 per week (£243 per month). The scheme must be generally available across an organisation (per PAYE scheme) and to qualify the childcare provided must meet certain standards e.g. The Ofsted registration number is to be held and checked at regular intervals (the standards differ across each country of the United Kingdom).
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