Benefits: exemption for employer supported childcare: summary of changes introduced with effect from 6 April 2005
Section 318 and 318A - D ITEPA 2003
This chart compares chargeable and exempt childcare provision before and after 5 April 2005.
|### To 5 April 2005||### From 6 April 2005|
|### Workplace nurseries||Exempt||Exempt||Exempt||Exempt|
|### Childcare vouchers||Chargeable||Exempt|
|First £55 a week exempt (£50 for the tax year 2005/06) then tax chargeable||First £55 a week exempt (£50 for the tax year 2005/06) then liable for Class 1 NICs|
|### Other childcare||Chargeable||Exempt||First £55 a week exempt (£50 for the tax year 2005/06) then tax chargeable||First £55 a week exempt (£50 for the tax year 2005/06) then liable for Class 1A NICs|
From 6 April 2005, in addition to the new tax exemptions for childcare vouchers and other childcare, new conditions came into force that relate to all employer-provided childcare support. These were:
Availability to all staff
All employees should be able to apply for the childcare being offered by the employer.
The age of the child
A child qualifies up to 1s t September following their 15t h birthday or 1s t September following their 16t h birthday if they are disabled.
Registered or approved childcare only
The childcare must be registered or approved.