HMRC guidance on provision of childcare and childcare vouchersFriday, September 9th, 2011
HMRC’s Employment Income Manual has been updated to cover recent statutory changes to the provision of employer-supported childcare.
HMRC provides guidance for its own staff on all “employment income” matters in the Employment Income Manual. It is a technical manual and comments on the tax legislation itself. It is published online and is available for employers and advisers to use – in fact visitors to HMRC’s website are often referred to the Manual for further information.
The most recent changes to the Manual include updated guidance on employer-supported childcare, i.e. access to childcare vouchers and childcare contracted by the employer, and to the provision of on-site workplace nurseries:
- the childcare voucher exemption as it applies for employees joining schemes from 6 April 2011 onwards, with some worked examples and the rules for determining “relevant earnings” and “excluded amounts” and following pages
- the workplace nursery exemption, pre-April 2005 and post-April 2005 and following pages
- the directly-contracted childcare exemption, pre-April 2011 and post-April 2011 and following pages.
HMRC’s E18 Employer Helpbook has also been updated to include references to the new exemption rules from April 2011, although readers are referred elsewhere for the details.