Childcare Voucher Scheme

The following list is not exhaustive but we hope it covers most of the questions that you may have about this Scheme.

Q    Why are we offering this scheme?
A     A small number of payees asked us to consider introducing a scheme to help with their childcare costs. Recent changes to legislation, introduced in April 2005, enable employers to provide a voucher (up to a limit of £243 per month) free of tax and national insurance contributions.

Q    How can this Scheme help with my childcare costs?
A    You will not pay tax or national insurance on the value of the childcare voucher (up to a maximum value of £243 per month) and this saving will help to reduce your childcare costs.

Q    Do I have to join this Scheme?
A    The Scheme is voluntary, but if you wish to take advantage of the tax and national insurance savings you will need to apply to join the Scheme.

Q    Why do I have to give up part of my stipend?
A    This Scheme is being offered as a “salary sacrifice” arrangement whereby you must give up part of your cash stipend and in return you will receive a benefit. The benefit (the Childcare Voucher) is paid free of tax and national insurance.

Q    If I join the Scheme will I receive the voucher with my monthly stipend payment?
A    On pay day, an electronic credit will be made to your personal account (with Accor Services). You can administer this account on-line (much like Internet banking) or by telephone. No papers vouchers are issued.

Q   How will the person providing my childcare be paid?
A    You will be able to direct payments to your childcare provider using your personal account with Accor Services. You will be able to access this account via the Internet or by telephone.

Q    What counts as eligible childcare?
A    Childcare schemes run by approved providers; childcare given in the child’s home by a person approved to care for the child or children; childcare given away from the child’s own home by a person approved to care for the child or children aged 8 or over; childcare given in the child’s own home by a domiciliary worker or nurse from a registered agency who cares for the child or children; and approved foster carers (the care must be for a child who is not the foster carer’s foster child). Approved childcare in England is childcare approved by a body acting under the authority of the Secretary of State. Childcare provided by a relative is not eligible for this scheme.

Q    How do I find out if my child carer is registered or approved?
A    Contact OFSTED (www.ofsted.gov.uk) or Nestor Primecare Services Limited (www.childcareapprovalscheme.co.uk)

Q   If I join, how long do I have to remain in the Scheme?
A    You must agree to remain within the Scheme for the remaining part of the tax year. You may leave the Scheme if you have a lifestyle change but you will not be able to rejoin within the same tax year. A lifestyle change could be pregnancy, redundancy of your partner, a change to your working hours, termination of your appointment or the death of a child or partner. It may also be that your childcare arrangements change. This list is not exhaustive and we will consider each request on merit.

Q   I receive Tax Credits. How will this Scheme affect them?
A    If you receive the childcare element of the Working Tax Credit, HM Revenue & Customs (HMRC) will class these vouchers as employer provided childcare. If you are considering joining this Scheme you must contact the Tax Credit Office to establish how the voucher would affect your Tax Credit entitlement. Further information is available from www.hmrc.gov.uk/childcare/taxcredits-guidance.htm. HMRC also have a booklet, called WTC5 which can be downloaded using this link: http://www.hmrc.gov.uk/pdfs/wtc5.pdf
Please use this link to see a supplementary page about Childcare and Tax Credits.

Additionally, our voucher provider, Accor Services, provide a Tax Credit Estimator, which is an online at http://www.childcarevouchers.co.uk

You will find this tool on the right hand side of the page. Use the ID CHUR6115 to log into the estimator.

Q   Will any of my work-related payments be affected by joining this Scheme?
A    If you are absent from work through illness you will be paid a full stipend for the first 28 weeks. This will not be affected by joining the Scheme. If your Board of Finance pays you a full stipend while on maternity leave, you will not be affected by joining this Scheme. If you are not paid a full stipend while on maternity leave you should contact the Clergy Payments Department to ascertain how the Scheme will affect your entitlements while you are on leave.

Q    Will a "salary sacrifice" affect my pension?
A    If you are a member of the Clergy Pension Scheme, your pension entitlements will not be affected by entering into a "salary sacrifice" arrangement.

Q    How might a "salary sacrifice" adversely affect my benefit entitlements?
A    This Scheme should not adversely affect  your benefit entitlements. Providing you do not allow your earnings to fall below the Lower Earnings Limit (LEL) you should not experience any change to your benefit entitlements.