News Archive
Below you will find links to our past news articles
16th November 2009
Childcare voucher petition exceeds 80,000, prompting rethink by government
The government has taken note of the widespread public, political and media pressure to save childcare vouchers and has decided to review its decision to remove tax relief after April 2011.
The line being put out by No 10 is that the rethink will involve limiting the tax relief to only those on the lower rate of tax. The revised position should be clarified through the Pre Budget Report, due to be published on the 9th December.
This is a welcome development and a good sign that the government has taken note of the broad surge of public opinion on the issue.
Contact and further information: press@faircare.co.uk
26th October 2009
54,000 Sign Childcare Voucher Petition
As of noon on Monday 26th October, over 54,000 people have now signed the petition to keep tax relief on childcare vouchers, making this petition the largest of any currently housed on the No 10 site.
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Anybody who wants to sign the petition can do so by going to:
http://petitions.number10.gov.uk/keepvouchers
Contact and further information: press@faircare.co.uk
21st October 2009
Postal Strike - Childcare Voucher Delivery
It is our intention to continue sending paper vouchers to scheme members by first class post for the duration of the postal strikes. However, to avoid delays, we will also e-mail pdf copies of the relevant vouchers to all scheme members who have supplied valid e-mail addresses. These vouchers can be printed off and handed to the childcare providers in the normal way.
We will do our upmost to avoid any delays in processing payments to childcare providers. Any scheme members or childcare providers who have concerns can contact us direct on 0800 652 4745 or by email to admin@faircare.co.uk
12th October 2009
Campaign To Save Childcare Vouchers Gains Ground
As of close of play on Monday 12th October, the petition lodged at No.10 in support of the campaign to keep childcare vouchers had received more than 40,000 signatures. This huge and growing response adds weight to the view that ending tax relief for childcare vouchers is a policy mistake on the part of the Labour Party.
Anybody who wants to sign the petition can do so by going to:
http://petitions.number10.gov.uk/keepvouchers
Contact and further information: press@faircare.co.uk
29 September 2009
Gordon Brown Announces Plans To Abolish Tax Relief On Childcare Vouchers
The Prime Minister has announced that Tax and National Insurance relief is to be withdrawn from Childcare Vouchers for new entrants from April 2011, although existing recipients (and those joining before April 2011) will continue to benefit until March 2015.
The savings from axing the tax relief (estimated at £400million per year) will go towards funding 10 hours per week of free childcare for up to 250,000 two year-olds by 2015-2016. This will be in addition to the existing free provision for all three and four year olds.
The free spaces, intended to be available to up to 40% of all two-year olds, will be targeted to families with modest or middle incomes (as yet undefined).
Reaction
Some 340,000 working parents currently benefit from childcare vouchers. Whilst some of the benefit is being enjoyed by higher earners, it is estimated that two thirds of recipients are basic-rate taxpayers, who currently benefit by up to £900 per year through the scheme. For most of these recipients, the loss of this tax relief will not be offset by the provision of the free childcare for two-year olds.
We believe this will prove to be an unpopular move by the Government, squeezing further the income of a significantly large group of working, middle earners.
Childcare vouchers have proven to be an effective, simple and popular way of making expensive childcare more affordable for working parents and at the same time, helping regulate the childcare industry.
Full details of the proposals will be available in the Chancellor’s Pre-Budget Report due in November 2009.
Contact and further information:
1 September 2009
Fair Care Launches Instant Cycle to Work
This new initiative from Fair Care, aimed at smaller organisations, or employers who want to enrol participants on a Cycle to Work Scheme on an ad-hoc basis, will be available from 1st September 2009. The scheme can be set up and processed on the same day, allowing participating employees to get hold of their bicycles and accessories within 48 hours. The scheme is fully-compliant with HMRC regulations and comes with all the necessary documentation and payroll guidance.
Savings of up to 49% of retail values are possible, with employees being able to get their bikes from a choice of retailers.
"There are a large number of employees in the UK, working for small businesses, who frequently miss out on this kind of benefit. Thanks to our years of experience and strong relationships with the major retailers, we have been able to streamline the process significantly, resulting in a simple and quick solution for smaller employers. With this initiative, we believe the scheme will now be available to a much wider group of employees than has previously been the case."
- Philip Curtis, Managing Director, Fair Care
1st August 2009
Company Cars Through Salary Sacrifice? - Fair Care Introduces the All-Employee Green Car Scheme
Responding to the global challenges of climate change, the Government's introduction of a starting 10% band for benefit in kind tax for low emission vehicles has made the provision of a car via a salary sacrifice scheme a very attractive proposition. The Green Car Scheme allows employers to introduce this valuable benefit at no net cost and with little administration or risk. The service is delivered through an advanced on-line quotation and fleet management system, significantly reducing the time and removing the hassle associated with running a fleet of company cars. Maintenance and insurance is conveniently included in the monthly cost, further reducing administration.
As manufacturers respond to changing demand, there is an ever increasing range of low emission vehicles that employees can choose from. The scheme can also be effective for higher-emission vehicles, thanks to the benefit of fleet and volume-related discounts, but the benefits reduce as the benefit in kind tax charge increases.
This innovative benefit from Fair Care is proving very popular amongst employees and at the same time is helping responsible employers take a big step towards encouraging green behaviour.
1st August 2009
Maternity Leave - Salary Sacrifice Childcare Voucher Schemes
HMRC has published new guidance, which covers the treatment of childcare voucher and other salary sacrifice schemes during periods of maternity leave. The guidance reflects the amendments to the Sexual Discrimination Act that took effect in April 2008 and also refers to the extended maternity leave entitlements that will come into force in October 2008.
The position regarding the calculation of Statutory Maternity Pay (SMP) has not changed; the first 6 weeks of SMP is payable at 90% of average weekly earnings, based-on earnings during the eight week period commencing 23 weeks prior to the expected due date. Taking childcare vouchers during this eight week period reduces the average weekly earnings and on this basis, many women have stopped taking childcare vouchers before this period, in order to maximise their SMP.
The guidance also confirms the previous view that salary sacrifice values cannot be deducted from SMP, which means that unless a woman on maternity leave is in receipt of enhanced maternity pay, through an occupational maternity scheme, the salary sacrifice agreement becomes ineffective.
The most significant element of the guidance, however, relates to the continued entitlement of an employee to contractual benefits (including childcare vouchers) throughout maternity leave (currently up to 26 weeks, increasing to up to 52 weeks for employees with the expected week of childbirth falling on or after 5th October 2008). In summary, it would appear that if the employee so wishes, an employer will be under obligation to continue to provide childcare vouchers to the employee for the period of their maternity leave, irrespective of whether the employer has any means of recovering the cost of those vouchers.
Understandably, this guidance has given rise to some debate amongst employers who offer, or who are considering offering a childcare voucher scheme.
The new guidance can be found at www.hmrc.gov.uk/employers/sml-salary-sacrifice.pdf.
If you would like to discuss this matter in more detail, please contact us.