Childcare Vouchers can be used to pay for the care of children up to the 1st September following their 15th birthday (or 16th if disabled). The vouchers can be used to pay for any childcare that is registered by Ofsted or the equivalent body in other parts of the UK, or activities that take place on school premises outside of school hours. Types of care include nurseries, nannies, childminders, out of school clubs and holiday clubs.
Childcare Vouchers are provided via salary sacrifice. This means you reduce your gross salary by a chosen amount, and receive Childcare Vouchers to the same value, but pay no tax and NI on those vouchers. Therefore the saving you make is the tax and NI you would have paid on that amount if it had been provided as salary.
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Commonplace system, but worthwhile doing to have tax free childcare