Due to a change in Government legislation, employees who join the childcare scheme from the 6 April 2011 will be limited to the equivalent of the basic rate on the amount of tax saving. The purpose of this change is to make the amount of tax saving the same for all employees regardless of their rate of tax. If you have already joined the Scheme on or before 5 April 2011, you will not be effected by these changes.

Do you want to save money on childcare costs?

The School uses KidsUnlimited to provide and administer the provision of childcare voucher scheme. This scheme is designed to save you money on the cost of your childcare.

The scheme applies to all members of staff and can be used to pay for any registered childcare provision, whether this is a child minder, after school club, day nursery, nanny, family member or the care element of boarding fees.

Members of staff can 'exchange' or sacrifice part of their salary in return for childcare vouchers. Tax and National Insurance contributions are not taken on the amount of the salary sacrificed - this means a saving of up to £75.00 per month if you sign up to the scheme.

KidsUnlimited voucher scheme

Frequently asked questions (FAQs)

1. What is it?

The KidsUnlimited scheme provides a way of enabling members of staff who are parents to pay the costs of their childcare before paying tax and National Insurance contributions, thereby helping parents save money on the costs of childcare.

Employee Savings from April 2011:

Tax Rate (20% tax + NIC 12%)	Existing Scheme Users	New Scheme Users
Weekly tax exempt amount	£55	£55
Monthly tax exempt amount	£243	£243
Annual tax exempt amount	£2,916	£2,916
Savings	£933	£933
Tax Rate (40% tax + NIC 2%)	Existing Scheme Users	New Scheme Users
Weekly tax exempt amount	£55	£28
Monthly tax exempt amount	£243	£124
Annual tax exempt amount	£2,916	£1,484
Savings	£1,225	£623
Tax Rate (50% tax + NIC 2%)	Existing Scheme Users	New Scheme Users
Weekly tax exempt amount	£55	£22
Monthly tax exempt amount	£243	£97
Annual tax exempt amount	£2,916	£1,166
Savings	£1,516	£606

2. Who does it apply to?

If you are paying on a monthly basis for childcare such as after school clubs, nannies, child minders, holiday play schemes, day nurseries or even relatives, it is likely that you will be able to save money by signing up to the scheme.

Childcare vouchers can be used for any registered childcare provider for children aged 0-15 years or 16 years if your child has a disability.

3. How does it work?

Parents can choose to 'exchange' part of their salary in return for childcare vouchers, thus reducing the amount of salary on which tax and National Insurance contributions are made. See below in relation to setting this up.

Once this has been arranged, the agreed amount will be deducted from your salary and your carer will be paid directly by Kids Unlimited.

You do not have to change your childcare arrangements in order to sign up for the scheme.

4. Will the childcare element of my Working Tax Credit be affected?

It could be, but it may actually be in your favour. Tax Credit is worked out on your total taxable income, and as you receive less of it when you make your salary sacrifice, your WTC could actually go up.

However, your KidsUnlimited Childcare vouchers benefit means you'll be paying less in real terms for childcare and this might have the effect of lowering the amount you can claim in the childcare element of WTC.

For more information regarding WTC see Tax Credits Online | or call the helpline on 0845 300 3900

5. How long do I have to sign up for?

You can sign up to the scheme for 3, 6, 12 months or for an 'indefinite' period of time. To leave the scheme you need to provide KidsUnlimited with 1 month's notice.

6. How do I start?

If you are ready to join scheme, simply access the flowchart at the link below which explains the steps that you need to take. You can download the KidsUnlimited application form and contract amendment form below. Ensure that you have read and understood the terms and conditions of the agreement and send your completed forms to Dominic Burchnall| (HR Advisor), who will send the documents to KidsUnlimited.

You must complete and return the following:

KidsUnlimited application form|

Amendment to contract of employment|

Childcare voucher flow chart|

A sample of the sections you should complete on the KidsUnlimited application form can be viewed by here|.

Your carer will receive payment within 4 days of the date that you have been paid/payroll is run.

7. Who should I contact if I need more information?

If you are unclear about any of this information or would like further information, please contact KidsUnlimited | or the voucher hotline on 08000 326777.

Benefits

Pay deadlines

Pay information