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Hello there

 

My staff currently recieve 25% off of their child's Nursery fees, what do other settings do for staff who's children attend the setting?

 

Many thanks

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We give a 25% discount increasing by 5% each year. When a child becomes funded, the discount is taken off their unfunded hours. We also have a rule that staff cannot work in the same room as their child. We are full daycare with three rooms.

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no discount for us either, but like someone else said, if we ask them to work extra we don't charge. It is unfair to other staff as they are effectively being paid more. I had a lady come for an interview that had 2 under 2's and she was receiving FREE childcare at the nursery she worked at! how they managed that on a 1:3 ratio I don't know...

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I was told many years ago that a discount might be classed as an income and to be careful of HMRC. We used to offer a discount to committee members but stopped it after that.

I checked this out with HMRC last year and they said that capital gains under £11.000 are tax free so that is was ok to go ahead.

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Discounts given to paid employees are a "benefit in kind" and as such classed as earnings for the employee on which they should be taxed (if they are earning enough including the discount to be taxed) - if you are giving discounts this should be recorded on an employees P11D which is issued at the end of each tax year - more administration and another good reason for not giving it!!

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  • 2 months later...

This subject has reared its ugly head again at work I think we need a policy on this has anyone done one and would you be willing to share ? Think it would really help to look at one the layout, pros and cons , I know it would have to be individual to us but my head is not quite getting it. Hope someone can help .

Sue x

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I agree with Laura as this is a benefit that is not available to all staff and therefore unfair to them.

Just one word of warning if staff have previously had this and anyone is thinking of changing it. This could be one of the 'terms of employment' even if not directly written in a document titled this. My understanding is that staff have to be consulted on any change to their terms of employment so you can't just change it. ACAS would give advice on this.

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I'm following this with great interest. my staff currently have 1 free and 1 50% discounted place - however I'm aware that this affects my budget etc but also I've never looked at it as a benefit in kind, when we were looking to do vouchers it was classed as a benefit in kind, however I didn't even tweak. But I think I remember reading something on HMRC a while ago which said it wasn't. I'll see if I can find it.

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