Childcare Voucher Advice - Northern Ireland

You are already aware that you can use your Childcare Vouchers at nurseries and childminders but did you know you can also use them to pay for the following childcare?

Boarding schools
If your child attends a boarding school, you are able to use Childcare Vouchers to pay for some of the non-curricular activities or care they receive. For example, you may want to pay for their boarding fees or after-school clubs – as long as the care is supplied by a registered provider and it is listed separately from statutory education on your invoice, you are able to use Childcare Vouchers.

Reception classes
If your child attends reception classes on registered premises, you are able to use Childcare Vouchers to pay your fees. This is because reception classes are not part of statutory education.

Out of school clubs
Childcare Vouchers can be used to pay for clubs that are hosted on school premises and do not form part of the National Curriculum. This can include breakfast and after school clubs and whether the school provides the service themselves or outsources it to another provider – as long as they are registered with their governing body, such as Education and Training Inspectorate (ETI).

Funded childcare for pre-schoolers
If your child will be entering Primary 1 in the next year, did you know that you could be entitled to free pre-school education?

Nursery schools, primary schools with nursery classes and some voluntary and private playgroups and day nurseries are all able to offer funded education to children in the year immediately before they enter Primary 1.

More than 90 per cent of children will be able to take advantage of funded places, which are available for at least 38 weeks between September and June.

Further information can be found at www.nidirect.gov.uk and search for a nursery near you by visiting www.daynurseries.co.uk

Tax Credits and Childcare Vouchers
Taking Childcare Vouchers as part of a salary sacrifice arrangement may affect the childcare element of your Working Tax Credit or your Child Tax Credits.

HMRC has a useful calculator which will help you establish whether you are better off by requesting Tax Credits or Childcare Vouchers. http://www.hmrc.gov.uk/calcs/ccin.htm

For further information, please visit www.nidirect.gov.uk

Statutory Maternity Pay/Statutory Paternity Pay
If you are already taking Childcare Vouchers and you are expecting to have a period of leave, you should check with your employer if your entitlement to Statutory Maternity/Paternity Pay will be affected.

Your employer will calculate your entitlement to Statutory Maternity Pay on your average weekly cash pay between the 17th and 25th week of your pregnancy. If you are participating in a salary sacrifice scheme during these eight weeks, your entitlement to SMP could be reduced because the amount of salary you receive is lower. You are best to discuss your situation with your employer.

Pensions
Provided you pay the minimum requirement for National Insurance payments, taking Childcare Vouchers should not affect your basic state pension. However, it may have some effect on your second state pension and so you should check with your employer or pension provider concerning personal or work-related pension schemes.

Redundancy
Weekly pay is one of the factors used to calculate statutory redundancy payments. This will be impacted by reductions in cash pay in return for Childcare Vouchers. Therefore, the element of your salary that you have ‘sacrificed’ does not have to be included by your employer when assessing your weekly pay for the purposes of a redundancy calculation. This could mean you are paid a lower redundancy payment if you are receiving Childcare Vouchers. If your employer provides an enhanced redundancy payment scheme, you should review the terms of the scheme to clarify whether the ‘sacrificed’ element of your salary will be taken into consideration when calculating your redundancy payment.

Busy Bees Benefits Savings Calculator
To find out how much you could save per year by using Busy Bees Benefits childcare vouchers please follow the below link.

Busy Bees Benefits Savings Calculator

www.nicma.org.uk - Northern Ireland Childminding Association
www.adviceni.net - Specialist advice and information on a wide range of issues including HMRC products and services
www.dhsspsni.gov.uk - The Department of Health, Social Services and Public Safety
www.nidirect.gov.uk - The official government website for Northern Ireland
www.early-years.org - The organisation for young children
www.niccy.org - Northern Ireland Commissioner for Children and Young People
www.gingerbreadni.org - Supporting lone parents and their children in N.I.
www.parentsadvicecentre.org - Support for parents facing any family difficulty
www.citizensadvice.co.uk - The Citizens Advice Bureau
www.hmrc.gov.uk - The HMRC official Website