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17 March 2005
Issue: 3999 / Categories: News
Extracts from the Revenue's 75th Tax Bulletin.

Employer-supported childcare

The tax and National Insurance contributions rules for employer-supported childcare are changing from 6 April 2005. FA 2004 Sch 13 and s 78 introduced the legislation for the change which amends ITEPA 2003 s 318 and introduces new sections 318A to D and 270A. The National Insurance rules are being revised by regulations to take effect from 6 April. The main changes are:

  • new tax exemptions up to the first £50 a week for employer-provided childcare vouchers or employer-contracted childcare subject to qualifying conditions;
  • the extension of the existing full tax exemption for employer-provided childcare to apply to persons not directly employed by the employer providing on-site childcare;
  • the National Insurance exemptions for childcare vouchers and contracted childcare will also be up to the first £50 a week for both primary and secondary Class 1 NICs (childcare...

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