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Child Care Vouchers (CCV's)

Questions & Answers

Q. Why is the University offering this?

A. The Inland Revenue have made offering Childcare Vouchers (CCV s) Tax and NI efficient for both employees and employers. We are keen to add to our Work Life Balance initiatives and this is financially beneficial for both staff and the University. NB. Any savings the University makes are being fed back in to fund other initiatives.

Q. How does the scheme work?

A. You can agree to sacrifice up to 243 of your salary each month in exchange for CCV's. The exact amount that you can sacrifice is dependant upon the rate of tax that you pay. If you are a basic rate taxpayer (earnings below 35,000 per annum, approximately) you can sacrifice up to 243 per month. If you are a higher rate tax payer (earnings between 35,000 - 150,000 per annum, approximately) you can sacrifice up to 124 per month. If you are an additional rate tax payer (earnings over 150,000 per annum, approximately) you can sacrifice up to 110 per month. Finally, if you selected childcare vouchers during the period 6 April 2010 5 April 2011 you can sacrifice up to 243 per month, regardless of which tax band you are in. As the government has agreed that you can save the tax and NI on that amount, we as your employer also save paying the NI that employers normally have to pay on the amount you have in CCV's each month too. Out of our saving as an employer we are paying Edenred a percentage to administer the scheme. So it is a Win / Win situation for everyone. For further information please visit the Inland Revenue website.

Q. What ages do Child Care Vouchers (CCV's) cover?

A. Children up to 16 years of age (slightly older if your child has a disabilility).

Q. How much can I save?

A. See the table below:

Annual savings based on monthly child care costs of: 50 100 150 243
40% tax payer 246 492 738 1196
Basic Rate Tax payer 198 396 594 962

Q. Who is the Scheme open to?

A. The scheme is open to all staff that are paid on fixed term or permanent contracts.

Q. If I use CCV's am I restricted in the type of child care I use?

A. In the main the answer is NO. CCV's can be used to pay for a wide range of childcare provision, but all carers who receive vouchers as payment must be either registered with Ofsted or with the equivalent authority for Scotland, Wales or Northern Ireland or have approved status. This can include: Registered childminders, nurseries and play schemes, out of hours clubs on school premises run by a school or local authority. You will also need to check that the provider is registered with Edered the voucher supplier, in order to receive payment.

Q. Am I committed to being paid partly in CCV's for every month from when I join the scheme?

A. No, You can vary the amount of CCV's you receive on a month to month basis if you need to (we wanted to make the scheme as flexible as possible for you).

Q. We both work for the University, can we both benefit?

A. Yes, you can both receive up to the maximum of 243 per month of CCV's irrespective of the number of children you have. The exact amount that you can receive is dependant upon the rate of tax that you pay. If you are a basic rate taxpayer (earnings below 35,000 per annum, approximately) you can receive up to 243 per month. If you are a higher rate tax payer (earnings between 35,000 - 150,000 per annum, approximately) you can receive up to 124 per month. If you are an additional rate tax payer (earnings over 150,000 per annum, approximately) you can receive up to 110 per month. Finally, if you selected childcare vouchers during the period 6 April 2010 5 April 2011 you can receive up to 243 per month, regardless of which tax band you are in. You will both need to set up deductions from your salary by using the Flexible Benefits Helpdesk on 01524 510614.

Q. I currently use the Pre School Centre on campus, will they take the vouchers?

A. Yes. NB. If you are part of the existing Salary Sacrifice Scheme you can use CCV's for any extra sessions you may need that are not already included in your Salary Sacrifice Scheme agreement. This scheme is complimentary to the Salary Sacrifice Scheme.

Q. If I want CCV's what do I do now?

A: Contact the flexible benefits helpdesk number on 01524 510614 and request childcare vouchers. You will need to contact the helpdesk between the 1st and 23rd of each month to receive an intro pack the following month.

(Nick Thoume)
Review Date Aug 2014

Lancaster University
Bailrigg
LancasterLA1 4YW United Kingdom
+44 (0) 1524 65201