Where do I report nursery or child care vouchers?
If you qualified for the ‘salary sacrifice scheme’ and received benefits such as nursery/child care vouchers in exchange for salary, you are not required to disclose this income on your tax return. Therefore you should report the net figure of your salary, excluding your nursery/child care vouchers. This is due to there being no income tax (nor NIC) payable on nursery/child care vouchers under this scheme. This scheme is popular when you qualify within the Statutory Maternity Pay. However, if this is not the case, the exemption for nursery/childcare vouchers is £55.00 per week for any employee regardless of your earnings. Therefore the excess you receive over the £55.00 exempt amount should be added to your gross pay from employment and subsequently will be chargeable to income tax.
