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HMRC internal manual

National Insurance Manual

Class 1: - non-cash vouchers - exemptions - definition of "childcare"

Regulation 25 and paragraph 7 of Part 5 of Schedule 3 Social Security (Contributions) Regulations 2001

NIM02440 explains that a non-cash voucher (see NIM02413) for childcare is disregarded for Class 1 NICs purposes,

For the purposes of this exemption, “childcare” includes:

  • care provided in accordance with Part 10 or 10A of the Children Act 1989 (child minding and day care for young children)
  • in the case of a child aged 8 or over, care provided by a child minder
  • in the case of a child aged under 8, care provided by a child minder where that care does not exceed, in total, two hours a day

care provided by:

  • a “nanny” as defined in section 71(13) of the Children Act 1989. That section provides that a nanny is a person who is employed to look after a child by:

    • a parent of the child; or
    • a person who is not a parent of the child but who has parental responsibility; or
    • a person who is a relative of the child and who has assumed responsibility for their care.
  • a “relative” as defined in section 105(1) of the above Act as meaning a grandparent, brother, sister, uncle, aunt or step-parent
  • care provided during out-of-school hours or during school holidays
  • full-time and part-time care. Application of this exemption to Northern Ireland

The above definition applies to Northern Ireland with the following differences:

  • in the second bullet above, for “aged 8 or over” read “aged 12 or over”; and
  • in the third bullet, for “aged under 8”, read “aged under 12”.