HMRC has updated its salary sacrifice for employers guidance to clarify the changes around childcare vouchers (CCVs).
As of 4 October 2018, The Salary Sacrifice benefit of CCV schemes will close to new entrants. However, those already in a scheme at that point are able to continue receiving vouchers.
To reflect the change, HMRC has updated its guidance to remind employers to stop giving employees CCVs with income tax and National Insurance reliefs if they tell the employer that they’ve started using the new Tax-Free Childcare scheme.
If this means stopping or changing a salary sacrifice arrangement, employers must also update their employee’s contract and their payroll software.
More information on support for childcare costs can be found on the Childcare choices website.
