|Please note: There are important changes to childcare voucher benefits for higher tax payers as of April 2011. See this information leaflet for further information.|
Following a re-tendering process the University is pleased to announce KiddiVouchers as our new childcare voucher provider. KiddiVouchers is an ethical company and donates at least 5% of profits to charities relating to children or childcare. The scheme enables employees to purchase £10 to £243 of childcare vouchers per calendar month through a salary exchange arrangement. You could save up to £1,487 per year on the cost of childcare. Savings will depend on the amount of childcare vouchers you order and the amount of tax and national insurance you pay. With the start of the school term you can also use vouchers once the children are Back to school
A minimum of one calendar month's notice must be given to join the scheme. To join, please visit the KiddiVouchers website or call them on 0800 612 4395 and quote our scheme reference number S817832T.
To meet the requirements of HM Revenue & Customs, a salary sacrifice is expected to be a permanent reduction in pay. You will not be permitted to change your voucher amount because you have over-estimated or under-estimated the amount of vouchers you need or because you have built up a surplus of voucher other than in August each year (changes effective from September), unless one of the following ‘life-changing’ events occurs:
- pregnancy/maternity or adoption leave
- extended sickness absence
- reduction in working hours
- redundancy of partner
- significant change in childcare arrangements (eg child moving from pre-school nursery to school)
- child reaches the age of 16
- death of child/partner
Membership of the scheme will lapse automatically when employment with the University comes to an end.
The University has decided that the normal salary for the appointment (ie the higher salary which applied before the salary sacrifice) will continue to be used for the calculation of overtime payments. With regard to pensions, USS and the Trustees of the University of Exeter Retirement Benefits scheme have agreed that, where an employee elects for a salary sacrifice, both employer and employee contributions will continue on the normal salary for the appointment. This means that, at retirement, your retirement benefits will be based on the unreduced salary figure.