What changes are planned for childcare voucher schemes?
The government announced in September 2009 that it intends to remove the tax and national insurance contributions for childcare voucher schemes provided by employers. The Department for Children, Families and Schools confirmed that this will be implemented through a “phased withdrawal”. From April 2011, employees who join an employer-supported voucher scheme will not be entitled to the current tax and NIC exemptions. Employees who are already members of a scheme will be unaffected until April 2015, at which time the tax and NIC exemptions will be withdrawn completely. Instead, the government intends to use the funding to support free nursery places for toddlers.
