There are many Inland Revenue guidelines regarding the use of vouchers and the rules governing salary sacrifice and addition so we have picked out the most relevant information for you. Remember that the Revenue update their info regularly, and they do not inform us. We are not tax advisors and you should always make sure that your accountant verifies that you are reporting correctly.

Salary sacrifice PDF and guidance/faq here

IR115 -Guidance for employees - childcare provisions by employers

Guidance for employers
1. Expenses and Benefits - a tax guide 480
2. Employers further guide to PAYE and NIC CWG2
3. Class 1A contributions and benefits in kind CWG5
4. Employers factsheet CFS
5. How to help your employees with childcare E18
6. The monthly equivalent for vouchers 5/4/2006 onwards
7. Interaction of tax credits and childcare vouchers

General exemptions

NIM 02413 Vouchers - non cash definition
NIM 02416 Vouchers - table of exemptions
NIM 02448 Vouchers - definitions and conditions to be met
NIM 02449 Definitions of terms in 02448
NIM 02450 Definition of registered childcare
NIM 02451 Definition of approved childcare
NIM 02452 Childcare that is unqualified
NIM 02455 Definition of a qualifying week, please note that the technical people at the Reveune say the method to work out the qualifying weeks still stands
NIM 02461 The chargeable expense
NIM 02471 How to calculate the exempt amount - the general rule and showing how to 'bank' your allowance
NIM 02472 How to calculate the exempt amount - the modified rule
NIM 02473 Shows the application of 53 weeks to 2006/7 tax year and this is the same for 2007/8

The structure to operate the voucher system is well established and as long as the critical rules governing salary sacrifice, or salary addition, and voucher issue are adhered to then the system works very well and Revenue approval is pretty much guaranteed. The revenue will not pre-approve, so simply set up your scheme and you can then inform them you are doing the scheme, it is a purely voluntary requirement and not compulsory to inform them. It is not required to inform them you are doing a salary sacrifice either.

It is important to note that if the rules and procedures are not followed, the employer and employee may be liable for Inland Revenue penalties. Early Years Vouchers Ltd accept no responsibility if you do not conform to the required regulations.

The information that we are linked to is Crown Copywrite and we have not altered or reproduced the information in any way and it is presented in it's original format. Information contained in the links is liable to change without notice.