Consultation on Incentives to Boost Employer-Supported Childcare

New improved tax and NICs incentives will enable employers to play their part in meeting the childcare needs of all their employees, according to Paymaster General Dawn Primarolo. Launching the consultation document, Dawn Primarolo said:

The key proposals in the consultation paper are:

- expanding the workplace nurseries tax exemption to include all forms of registered childcare, including approved home childcare;

- simplifying the requirements for the tax exemption to make it easier for employers to qualify by removing the condition for the employer to have management responsibility of the provision;

- introducing a new tax exemption for childcare vouchers (that are currently only exempt from NICs);

- introducing a financial limit for the tax and NICs exemption on all formal childcare provision (other than workplace nurseries) and childcare vouchers; and

- ensuring that where schemes are offered, childcare support is available to the whole workforce.

The consultation period will end on 31 May 2003. The Government will consider the consultation findings and plan to provide an update by the pre-Budget report. The consultation document is available on the HM Treasury website at www.hm-treasury.gov.uk.
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