|
Childcare Vouchers
From
April 2005 all parent employers of nanny's regardless of income
will be able to take advantage of the Employer Supported Childcare
Voucher Scheme. The scheme offers attractive tax relief to parents
(up to £2000 per household) giving a substantial saving on
childcare costs.
Childcare
vouchers are simply another way of paying your nanny. As an employer
of a nanny you and/or your partner are able to earn £55 per
week deduction free as long as that money is used for childcare.
There
is a process to go through to be able to use Childcare Vouchers.
You need to be employed and your employer needs to be affiliated
to a childcare voucher company. Your nanny also needs to be approved
by an approvals body before she can start accepting the vouchers.
Once
set up, the process is fairly simple to run. Your employ deducts
at source part of your income which is then turned into vouchers.
These vouchers are usually sent directly to you and are then used
to pay an amount of your nanny's net wage.
At
DomesticPaye we advise that you contact your employers HR department
as a first base to ensure they offer a Childcare Voucher scheme.
If they do then that's probably the biggest hurdle overcome leaving
you to register your nanny then start earning money tax free.
|
