The RG Childcare scheme is a great way for employers to help support working parents whilst also saving their organisation money on tax and NI costs. Childcare Vouchers closed to new entrants in October 2018 but it's still a fantastic benefit for current participants.
Childcare Vouchers allows parents to purchase up to £243 of childcare per month from their gross salary. This means that they don't pay tax or NI on the cost of this childcare, saving them up to £933 per year. The exact amount a parent can apply for depends on their tax bracket. Here's a breakdown of what can be saved.
Please note the tax rate threshold is subject to change. Up-to-date information can be found on this page.
The RG Childcare scheme is designed to give employees full control of where their payments are going. They can register any HMRC recognised childcare provider to receive vouchers including nannies, after-school clubs, sports classes and nurseries. The Childcare vouchers get deducted from the employee's gross salary and added into their benefits account. Employees can set up recurring payments on their account so that the requested amount is paid to their childcare provider as soon as it gets added to their account. If their circumstances change, participants can amend or pause their contribution and will remain eligible as long as they stay with their current employer, contribute at least once every 52 weeks and they have an eligible child.
Payrolls teams also love RG Childcare's simple administration portal. It only takes about 5 minutes per month to make approvals and export a list of employee deductions. They also have use of our 24/5 Client Support team and employees can contact our 24/7 employee support Helpdesk to lend a hand if they ever have any questions.
Availability & Cost
RG Childcare Vouchers is available to UK customers only.
To discuss pricing or activation of this product, our Consultants and Client Success Managers are here to help. Send us a message and we'll respond with 24 hours.
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