|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.
Tax Free Childcare Scheme v Childcare Vouchers
Be in a position of choice in 2015!
You may be aware that the Government is launching the new Tax-Free Childcare scheme in the autumn of 2015. The new scheme will allow parents to receive Government funding for up to 20% of their childcare costs up to a maximum of £2,000 per child per year. Under the new scheme, there is no employer involvement, and therefore National Insurance savings to be made.
The current salary sacrifice childcare voucher scheme will continue to run for existing scheme members. Employees can continue to join the current scheme up until the new scheme is launched. After this date, new registrations cannot be accepted.
In the light of this, here at KiddiVouchers we feel it is very important that parents are in a position of choice in 2015. Depending on your childcare costs, the current childcare voucher scheme may save you more money:
60% of KiddiVouchers parents would be better off with childcare vouchers. On average these parents would save £400 more with childcare vouchers than the new Tax-Free Childcare scheme.
If you pay for childcare, you should join your employers KiddiVouchers scheme before it is too late. You can sign up today at www.kiddivouchers.com or phone us on 0800 612 4395. You’ll need to quote scheme number: S817832T and have a payslip to hand.
If you are unsure what the new Tax-Free Childcare scheme means to you, there is more information here. You can also use our savings calculator to see which scheme will be more beneficial to you. But remember, you still have 12 months to enjoy tax and National Insurance savings under your employer’s salary sacrifice scheme.
If you have any questions regarding this, please contact us on firstname.lastname@example.org or 0800 612 4395.
For and on behalf of KiddiVouchers
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.