Employer Supported Childcare – Workplace Nurseries
What is a Workplace Nursery?
Workplace Nurseries are one of the ways an employer can help
their employees with the cost of registered childcare and
is a scheme supported by HM Revenue and Customs. Nursery places
accessed through a Workplace Nursery scheme are fully exempt
from Tax and National Insurance Contributions (unlike Childcare
Vouchers which are limited to £243 per month). This means
substantial savings for parents who are able to access the
scheme.
In order for an employer to offer their staff a Workplace
Nursery place they will need to meet criteria set by HM Revenue
and Customs. To enable interested employers to work towards
this, Doncaster Early Years and Childcare Service have assigned
a dedicated Project Officer to work with local employers and
provide information to parents.
How does a Workplace Nursery Save Money?
In the same way that Childcare Vouchers are, Workplace Nursery
places are offered on a ‘salary sacrifice’ basis. This means
that you sacrifice a specific amount of your salary and instead
receive that value of childcare at the designated Workplace
Nursery. Workplace Nursery places are exempt from employee
Tax and National Insurance Contributions (NIC), so you only
pay Tax and NI on the reduced level of your salary.
Estimated savings on a Workplace Nursery (WPN) place. Based
on fees of £640 per month (example calculated using Tax at
22% and NIC at 11%).
| |
Salary (no WPN) |
Salary (with WPN) |
| Monthly Salary |
£1500 |
£1500 |
| Loss Cost of WPN fees |
£0 |
£640 |
| Amount used to calculate Tax and NIC |
£1500 |
£860 |
| Employee Tax |
£209 |
£81 |
| Employee NIC |
£115 |
£45 |
| Saving (per month) |
£0 |
£198 |
| Actual cost of childcare place |
£640 |
£442 |
Savings on this example may increase to £262 per month for
higher rate Tax payers (Figures shown are approximate and
exact savings depend on personal circumstances).
| For more information contact: |
|
| Write to: |
Linda Randle-Bissell, Employer Engagement Officer
(CMB)
Early Years and Childcare Service
Richmond Hill
Melton Road
Sprotbrough
Doncaster
DN5 7SB |
| Telephone: |
01302 862141 |
| Email: |
linda.randle-bissell @ doncaster.gov.uk |
Our Philosophy Is To Care.
|
