Childcare fees paid by employer

[finny]

Hi,

Does anyone have their childcare/creche fees paid by their employer tax-free (without paye being charged)? I know that big companies can set up a creche with outside help and that's tax free for employees that use it. But what about smaller companies?

Is there a way for my employer to pay my (and my colleagues) creche fees without me paying paye on it?

Thanks!

 

[Brendan Burgess]

No.

If an employer has a creche, they don't have to charge BIK.

But if they pay a creche, they have to treat it like any other income.

Brendan

 

[MOB]

I have a very vague recollection of coming across a scenario ( but am open to correction) where employers 'provide' a creche but do so in a manner which looks a lot like outsourcing, which is in practical terms not that different to paying creche fees, but which benefits from the favourable tax treatment.

This particular tax treatment has always struck me as quite unfair, in that it makes it impossible for small employers to compete with larger ones in offering this benefit.

 

[finny]

I agree! Does anyone else ahve more details on such a scheme?

 

[Towger]

This particular tax treatment has always struck me as quite unfair, in that it makes it impossible for small employers to compete with larger ones in offering this benefit.

To put it simply and I don't mean to offend any one. If a benefit is (can be) received by Public Sector employees, then it is exempt from BIK. The classic example (now relaxed) was with computers. Public Sector employees only got laptops for use at home, so laptops were exempt. But desktops were not.