At present, employees do not pay tax on the benefit of a place in a nursery provided by an employer, as long as the provision satisfies strict criteria. If the nursery is not on the employer's own premises, the employer must be wholly or partly responsible for both the financing and management of the nursery. This tax break has been relatively limited in its scope.
A more popular form of support is employer-provided childcare vouchers, which can be used for any form of childcare. These are exempt from both employers' and employees' national insurance contributions (NICs), but employees are taxed on them.
Register now to continue reading
Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's included
-
Free access to 4 subscriber-only articles per month
-
Unlimited access to news and opinion
-
Email newsletter providing activity ideas, best practice and breaking news
Already have an account? Sign in here