Salary sacrifice explained
The most common way to provide employees with childcare vouchers is via salary sacrifice, where childcare vouchers are offered as part of an employees existing salary. The employee sacrifices part of their wages in return for a similar value in vouchers.
Benefits of salary sacrifice
As a binding agreement in employment law, both parties are protected by legislation when entering into a salary sacrifice agreement.
You pay no NI on the amount agreed and your employee pays no NI or tax too, so everyone saves.
Find out more
To find out more about the potential benefits of setting up a salary sacrifice scheme, please contact us.
For answers to commonly asked questions see Employers FAQs
Next: Read more about launching our scheme