The above helpsheet has been updated to reflect changes to Employer Supported Childcare where an employer operates a childcare voucher scheme and/or directly contracted childcare.

By way of reminder, these legislative changes apply from 6th April 2011. There are no changes to the tax exemption and NICs disregard available for workplace nursery schemes.

The purpose of the changes is to even out the amount of income tax savings available to all employees joining schemes on or after 6th April 2011 regardless of the marginal tax rate that the individual pays.

Following on from these changes the helpsheet reminds employers that if they operate a childcare voucher scheme or provide directly contracted childcare, for employees joining the scheme on or after 6 April 2011 it will be necessary to carry out an assessment of the employee's earnings to work out the exempt amount.

The revised helpsheet is available from http://www.hmrc.gov.uk/helpsheets/e18.pdf