Pay Plus for childcare
Childcare Vouchers - Government Announcement March 2013
The Government has announced a new scheme for tax-free childcare for working families to take effect from autumn 2015. The Government have indicated that the changes will replace the existing arrangements for Childcare Vouchers paid for via salary sacrifice. At present the indications are that those already in a Childcare Voucher scheme, such as the one operated by the University through our partners Edenred, will continue to be able to participate in that scheme and continue to benefit from the tax and NI free savings on childcare payments or have the option to benefit from the new scheme - you will not be able to participate in both. You do not have to make any decisions now. New joiners after autumn 2015 will not be able to participate, but will be eligible to take advantage of the new tax-free childcare scheme to be implemented.
The University is in discussion with Edenred over the implications for our existing scheme and to develop a plan to ensure a smooth transition to the new arrangements.
Some frequently asked questions are available at the HM Treasury website at http://www.hm-treasury.gov.uk/tax_free_childcare_qanda.htm.
The University will update these pages with further information as it becomes available.
Pay plus for childcare is the University's salary sacrifice scheme for childcare vouchers. The scheme can help you reduce your childcare costs, because childcare vouchers are exempt from income tax and National Insurance (NI), up to a maximum of £243 per month. You can use your vouchers as payment towards a variety of childcare provision, for children up to the age of 15 (16 if they have a disability) including:
- Home based care – such as childminders, nannies and au pairs.
- Pre-school care – such as nurseries, play schools and crèches.
- Care for older children – such as breakfast clubs, after school clubs and holiday clubs.
How it works
You change your terms and conditions of employment to reduce your salary by up to £243 each month and the University provides an equivalent amount of childcare vouchers (from the University's supplier, Edenred). The salary reduction results in a saving on the amount of tax and NI that you pay, as well as a reduction in the amount of employer NI the University pays.
For staff joining the scheme on or after 6 April 2011, the maximum amount of vouchers you can claim will be based on an assessment of your annual earnings. The different monthly amounts are as follows:
• Basic rate - £243 (earnings less than £35,000)
• Higher rate - £124 (earnings between £35,001 and £150,000)
• Additional rate - £97 (earnings over £150,000)
The University will carry out a Basic Earnings Assessment when you join the scheme, which will determine how many vouchers you can claim. You can join the scheme before the Basic Earnings Assessment is carried out, but your order may be amended if you have requested more vouchers than permitted.
Pay Plus for childcare is administered on the University's behalf by an external provider, Edenred. They will manage the administration of all new orders, order amendments and leaving the scheme, so there will be no need to submit forms to Reward & Benefits.
How to join
New members can find out more information and sign up through the Edenred myBenefits site. If you have already logged in to access the UOffers site, you can use your existing username and password. If not, your username and password are as follows:
• Username – Employee number preceded by SU, removing any zeroes from the start of the number. E.g. if your employee number was 000123456, your login would be SU123456.
• Password – Your month and year of birth, in the format MMYY
Your employee number can be found on myJob or on your payslip.
You will be prompted to change your password following your initial login.
If you join Pay Plus for childcare you will also receive unlimited use of Family Advice Line & Childcare Advice Line, a nationwide freephone telephone helpline operated by professional staff offering advice and guidance on a range of childcare and family issues, including sourcing emergency childcare, child disability or elderly care.
Existing members can access their account to make amendments or leave the scheme either through the myBenefits site as above, or through the direct link to the Edenred Childcare Vouchers site with their membership number.
Childcare Vouchers - Government Announcement March 2013
The Government has announced a new scheme for tax-free childcare for working families to take effect from autumn 2015. The Government have indicated that the changes will replace the existing arrangements for Childcare Vouchers paid for via salary sacrifice. At present the indications are that those already in a Childcare Voucher scheme, such as the one operated by the University through our partners Edenred, will continue to be able to participate in that scheme and continue to benefit from the tax and NI free savings on childcare payments or have the option to benefit from the new scheme - you will not be able to participate in both. You do not have to make any decisions now. New joiners after autumn 2015 will not be able to participate, but will be eligible to take advantage of the new tax-free childcare scheme to be implemented.
The University is in discussion with Edenred over the implications for our existing scheme and to develop a plan to ensure a smooth transition to the new arrangements.
Some frequently asked questions are available at the HM Treasury website at http://www.hm-treasury.gov.uk/tax_free_childcare_qanda.htm.
The University will update these pages with further information as it becomes available.