More filling and filing

Following from my article Filling and filing I would like to draw readers' attention to the National Insurance issue surrounding employer-supported childcare schemes.

Employees who join an employer-supported childcare scheme up to 5 April 2011 and who receive childcare vouchers as a benefit as part of a salary sacrifice or flexible benefit scheme are allowed to receive up to £243 per month or £55 per week free of tax and National Insurance contributions (NIC).

However the rules changed for employees who either join the scheme for the first time or who rejoin it after a period of more than 52 weeks after 6 April 2011.

With effect from that date these employees have their tax relief restricted if their marginal rate of tax is higher or additional rate. Employers must identify the employees’ marginal tax rates by carrying out a basic earnings assessment...