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Do you have children or legal parental responsibility for children under the age of 16? Do you pay for any of the following types of Ofsted registered childcare?:
- Day nurseries
- Childminders
- Before and after school clubs
- School holiday schemes
- Registered nannies or au pairs.
If any of these situations apply to you then you could benefit from the Wigan and Leigh Housing childcare voucher scheme that is carried out in conjunction with Busy Bees Childcare Vouchers. All employees are eligible to participate regardless of sex, age, position or salary. If two parents of the same child are employed by the company double savings can be made.
Parents can make savings of up to £1,196 per parent per annum on childcare costs by entering into a ‘salary sacrifice’ agreement with the company. This involves exchanging part of their gross salary for childcare vouchers before income tax and National Insurance Contributions (NIC) are applied, thus making an income tax saving of 22% and NIC saving of 11% for lower rate taxpayers. For higher rate taxpayers the total saving will be 41%.
The maximum amount of salary that can be sacrificed under the scheme is £243 per month. The remaining salary, after the exchange has been made, must not fall below the minimum wage. This is currently £5.35 per hour.
Wigan and Leigh Housing is aware that employees individual circumstances differ greatly. As with all schemes of this type there may be occasions when it may not be in the employee’s best interests to join the scheme. Examples of such occasions are:
1) If an employee is claiming the childcare element of working tax credits, they should always seek advice before joining the childcare voucher scheme, as their entitlement to childcare tax credits could be affected.
2) If an employee is expecting a baby. At a certain point in the pregnancy it is advisable to stop receiving childcare vouchers as it could have an effect on statutory maternity pay.
Busy Bees will provide assistance and advice to ensure that all who enquire are making the correct decision.
For further information please refer to the contact information below:
External Link
Click on this link to go to the Busy Bees website
The Busy Bees website has a savings calculator. Employees can enter their salary details on here along with their childcare costs to see what potential savings could be made.
For employees without access to the internet, parent packs can be obtained directly from Busy Bees by calling them on 08000 430860. The Finance & Admin Section also have a supply of these packs.
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