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HMRC internal manual

Employment Income Manual

Vouchers and credit-tokens: Childcare vouchers

Section 270A ITEPA 2003 and section 78 FA 2004

Employer-supported childcare schemes are voluntary arrangements. The government supports these initiatives with the tax exemption and NICs disregards that are available, but it’s up to the employer to decide whether or not to offer childcare support to its employees.

A new limited tax exemption intended to encourage employer-supported childcare in the form of non-cash vouchers was introduced from 6 April 2005. The table below sets out the guidance specifically concerned with childcare vouchers.

Guidance reference Subject
EIM16051 Vouchers and credit tokens: childcare vouchers
EIM16052 Childcare vouchers: exemption from 6 April 2005 to 5 April 2011
EIM16053 Childcare vouchers: exemption from 6 April 2011
EIM16054 Childcare vouchers: exemption from 6 April 2011: relevant earnings amount
EIM16055 Childcare vouchers: exemption from 6 April 2011: excluded amounts
EIM16056 Childcare vouchers:
EIM16057 Childcare vouchers: example: employee in employer’s scheme before 6 April 2011
EIM16058 Childcare vouchers: examples: employee joining employer’s scheme after 5 April 2011
EIM16059 Childcare vouchers: working tax credit
EIM16230 Childcare vouchers: from 4 October 2018: eligible employee