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What is the correct way to go about deducting an employee's

Guest Nuby

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childcare costs for their child at the nursery where they work at? Can 100% of the costs be deducted before TAX or is a proportion of it potentially a taxable benefit?

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I agree with SueJ about checking with hmrc. My (unqualified) view would be that it should come out of taxable income - otherwise you'll be giving your employee a perk which tax would be payable on and would need to be reported to hmrc anyway.

But I'm sure someone at hmrc will be able to explain exactly what you need to do, and how the money should be deducted.

Can you come back and let us know the answer please!?

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I personally have always done their pay as normal and they pay full fees as everyone else does as a totally separate thing. I would think they could sign up to the childcare vouchers though where they could get upto £243 tax free but you would have to do that through a company I would think?

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We don't offer staff reductions as it is unfair to other staff as it is seen as a bonus or a higher wage for the staff member.

This reminds me of when I ran a 'work place' setting that also offered community places - my line manager, who had absolutely nothing to do with childcare said 'why on earth are you offering a sibling discount?...... do you give them less care? :-) :-)

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