Employment issues (tax)

Employersupportedchildcare

Concise information on the tax issues relevant to both employers and employees.

All Employment issues (tax) factsheets

Supporting employees with childcare can be a valuable recruitment and retention tool, and there are established routes for employers to contribute towards these costs in a tax-efficient way. Historically this has included employer-run schemes and childcare voucher arrangements, though the government's own tax-free childcare scheme now sits alongside these as an option for many families.

The rules around which schemes remain open to new entrants, and how they interact with other benefits an employee may receive, can be complex and depend on when an employee joined a scheme. If you're considering introducing or reviewing childcare support for your team, we can talk you through what's currently available and how to implement it correctly.

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