The way in which the government is supporting parent funded childcare is changing, but there is a limited window left in which employees may be able…
Under a salary sacrifice the employee gives up an amount of salary in return for an employer provided benefit. Tax and NIC savings result from the benefit being exempt from, or incurring, a lower tax and NIC charge than the amount of salary given up.
Tax efficient salary sacrifice schemes can only cover pension contributions, ultra-low emission cars, cycle to work schemes and pre-existing childcare vouchers arrangements. For employers, pension contributions and low emission cars are likely to be the most attractive salary sacrifice benefits to offer to their workforce.