Childcare Plus: frequently asked questions
The scheme is very easy to operate. You are able to access your Sodexo account 24/7 via the Internet or telephone and authorise Sodexo to make a direct payment into your childcare provider’s bank account.
Who is Eligible?
All employees of the University of Glasgow with fixed hours are eligible for the scheme, provided that they have a child who is of eligible age for childcare under this scheme (see definitions later in this guidance).
You may only use registered or approved care as defined.
If you do not currently receive Childcare Plus vouchers, you can sign up at any time, provided that you do not earn less than the Pay Protection Limit (see Benefits Plus: frequently asked questions), or, your earnings would fall below the National Minimum Wage if you were to participate.
If you participate in any other parts of Benefits Plus then these will also be taken into account when deciding if you can participate in Childcare Plus (please refer to Benefits Plus: frequently asked questions for more details).
What is Childcare Plus?
Childcare Plus is an arrangement between you and the University of Glasgow, as your employer, whereby you agree to exchange, part of your income for a credit in your own Sodexo childcare account.
The amount that you receive through this exchange should stay constant unless you experience a significant "lifestyle change": This is defined as any significant changes in your employment situation or your childcare requirements that would mean that you either need to change the amount you exchange or come out of the scheme altogether. Some examples are:
• Divorce or separation
• Birth or adoption of a child
• Death of a spouse/partner/dependant
• Start of, or return from, maternity leave
• Significant change in personal financial circumstances (for example, your partner being made redundant) or simply a change in your childcare arrangements
There is no charge to either you or your chosen carer(s) for participating in the Childcare Plus. The University, as your employer, makes a saving on employers' National Insurance contributions on the amount you decide to exchange. These savings allow the University to pay Sodexo for administering the scheme, so there is no real cost to the University as the employer.
What are the instructions for Joining the Sodexo Scheme?
Once you have read all of the relevant information contained in these web pages and you wish to proceed with joining the scheme, you will be required to register with Sodexo.
To register you should contact Gillian McTaggart and she will arrange for a welcome email to be sent to you with instructions on how to register yourself and your childcare provider with Sodexo. This welcome email will have a life of 24 hours from when you open it for security purposes. If you have not received an email within 5 working days or require a new email to be sent, please contact Gillian McTaggart on 0141 330 2666.
On the Sodexo website you will need to complete your details as requested. Please remember that the maximum amount in vouchers you can take is £243 per month, regardless of how much your monthly childcare costs are. From the 6th April 2011 the maximum amount of vouchers you can take will be based on whether you pay tax at the basic, higher or additional tax rate.
Please also have your pay slip available when you register as you will need your Pay Number and NI Number (both can be found on your pay advice slip) to complete the registration process. You will also need your childcare provider’s contact information (if known).
How does Childcare Plus work?
Once you have registered yourself and your carer(s) via the Sodexo website they will use the information you have provided to ensure that your chosen childcare provider is registered or approved, and therefore eligible to receive your childcare vouchers. Sodexo will not pay any carer who is not registered or approved as this contravenes HM Revenue & Customs legislation. Your first deduction will take place in the pay period following your application to Sodexo. Please note that you must register by the 10th of the month (or last working day before) to be on that month’s order.
You will receive your benefit amount in your Sodexo account on payday that month. If you register after the 10th, you may have to wait until the following month to be included. Sodexo will credit your account with the full order amount. It is then up to you. You can use as little or as much of the credit as you like. You can access the account via the Internet or you can also contact Sodexo on 0800 328 7411.
You can set up payment to your childcare provider through the Sodexo website or by calling the number above. There is also the facility within the Sodexo system to set up standing orders, so that if you have a regular payment to a childcare provider on a weekly or monthly cycle, you can automate the whole process.
How much can I save?
The amount that you can save is directly linked to your level of income, your rate of income tax and rate of National Insurance Contributions. You currently are allowed to reduce your salary by up to £243 per month, provided that after your salary has been reduced, the level of salary is still above the National Minimum Wage and the University's Pay Protection Limit of £6,600. This is essential in order that you do not lose your entitlement to certain state benefits and is a prerequisite of joining the scheme.
Should you decide to take the maximum value of £243 per month (£2,916 per year) under Childcare Plus, you will save up to £1,196 on the cost of your childcare over the course of the year.
To see how Childcare Plus interacts with the other Benefit Plus savings see the Benefits Plus calculator.
What’s the maximum amount of Childcare Plus I can opt to receive?
If you join Childcare Plus before 6th April 2011 you are you are eligible to receive up to £243 per month (£2,916 per year) in the form of Sodexo childcare vouchers account credit.
If you opt to join Childcare Plus from the 6th of April 2011 the maximum amount of childcare vouchers that you can choose to receive will depend on the rate of tax that you pay.
Maximum Childcare Plus vouchers amounts from 6th April 2011
| Tax Category | per month | per year |
|---|---|---|
| Basic Rate tax payers | £243 | £2915 |
| Higher Rate tax payers | £124 | £1484 |
| Additional rate tax payers | £97 | £1166 |
In order to receive Vouchers you must be in receipt of at least National Minimum Wage or the University's Pay Protection Limit when your salary has been reduced. This is essential in order that you do not lose your entitlement to certain state benefits and is a prerequisite of joining the scheme. National Minimum Wage is currently set at £5.93 per hour and the Pay Protection Limit is set at £6,600. You must earn at least this amount after the value of your Imagine Childcare Vouchers amount has been deducted.
Please refer to the Benefits Plus calculator. This will help you to work out what your savings could be through joining Childcare Plus.
Qualifying childcare provision in Scotland
In Scotland, childcare vouchers attract income tax and NI exemption , provided that the type of childcare used is registered. If the childcare is provided away from the child’s home, then it must be registered in Scotland for children up to and including 16 years.
A registered childminder, nursery or childcare scheme is one that is registered in Scotland by the Scottish Commission for the Regulation for Care.
Registered or approved childcare can include:
• Registered childminders, nurseries and play schemes
• Out-of-hours clubs on school premises run by a school or local authority
• Childcare schemes run by approved providers, for example, an out-of-hours scheme or a provider approved under a Ministry of Defence accreditation scheme
• Any childcare, including out-of-school care, regulated by the Care Commission
• Childcare given in the child’s own home by (or introduced through) childcare agencies including sitter services and nanny agencies, which must be registered (not a relative)
• Approved foster carers (the care must be for a child who is not the foster carer’s foster child)
Qualifying childcare provision in England
In England, childcare vouchers can attract income tax and NI exemption, provided that the type of childcare used is either registered or approved. If the childcare is provided away from the child’s home, then it must be registered in England for children up to and including 7 years. A registered childminder, nursery or childcare scheme is one that is registered in England by OFSTED or the Social Care Inspection Commission. Approved childcare in England, is childcare approved by a body acting under the authority of the Secretary of State. Childcare providers who are eligible to apply for approval in England include: childminders who are not required to register, nannies or au-pairs.
Registered or approved childcare can include:
• Registered childminders, nurseries and play schemes
• Out-of-hours clubs on school premises run by a school or local authority
• Childcare schemes run by approved providers, for example, an out-of-hours scheme or a provider approved under a Ministry of Defence accreditation scheme
• Childcare given in the child’s own home by a person (not a relative even if approved or registered) approved to care for the child or children
• Childcare given away from the child’s own home by a person approved to care for the child or children aged 8 or over (If the carer is a relative, then they must also care for unrelated children to qualify)
• Childcare given in the child’s own home by a domiciliary worker or nurse from a registered agency who cares for the child or children (not a relative)
• Approved foster carers (the care must be for a child who is not the foster carer’s foster child)
What are the qualifying ages for children in Scotland & England?
In Scotland and England, the child for whom the childcare voucher is provided must be a child of the employee or a child who lives with the employee and for whom he or she has parental responsibility.
A child qualifies up to 1st September following their 15th birthday or the 1st September following their 16th birthday if he or she is disabled. The childcare used must be registered as specified.
I don’t have fulltime childcare requirements; do I still qualify for this scheme?
Yes, however, you will still be required to take a fixed sacrifice from your salary each pay period. These sacrificed earnings will build up in your Sodexo childcare account until such time as you need to pay your childcare provider.
For example, you may use a summer holiday play scheme – A small deduction would come from your salary each pay period and would be credited to your Sodexo childcare account. When you need to pay for the play scheme, you simply access your Sodexo childcare account and authorise them to pay an amount that you choose to the provider of your choice. Sodexo will then, on your behalf, make a direct payment to your care provider’s bank account.
This can be a very useful way to budget for your childcare as well as gaining a financial benefit through income tax and NI savings.
How does my carer get paid?
You access your Sodexo childcare account via the Internet or telephone and authorise Sodexo to make a direct payment directly to your nominated childcare provider via bank transfer.
When you initially join the scheme, you will be able to enter all of your carer’s details so that Sodexo are able to check that they are registered or approved as required and so that they can subsequently make payments to them upon your request. There is no charge to you or your carer for each transaction. You are able to set up new carers with Sodexo as and when you childcare provider changes. Simply call them on their free-phone number (0800 328 7411).
Can I pay more than one carer through the Sodexo system?
Yes. Providing that all of the forms of childcare you employ qualify as registered or approved under the legislation for your country, then you can use as many childcare providers as you wish. This gives you the flexibility you need as the child/children get older and you have different childcare requirements.
Could my partner also enter into this scheme and make savings?
Yes, the salary sacrifice scheme applies to individual earners, so if your partner works for the University or another organisation that offers a similar salary sacrifice scheme, then they may also be able to make savings on the cost of your childcare: potentially doubling your savings.
Will my other benefits (eg overtime, pension, share options, bonuses etc) be affected if I decide to join the Sodexo scheme?
All of your University of Glasgow benefits (Pension, Holiday Pay, Overtime etc.) will be based on your pre-sacrifice reference salary, so there will be no negative impact on these should you decide to join the Childcare Vouchers Scheme.
I receive tax credits: what’s the effect on these if I decide to join the scheme?
If you are currently in receipt of Child Tax credits, you should carefully consider the impact that entering the scheme may have on these. Because everyone’s circumstances are different it is difficult to give you a precise picture of what the effect may be in your case. HM Revenue and Customs provide an online calculator that can be viewed at
http://www.hmrc.gov.uk/calcs/ccin.htm .
If you are unsure, you should contact the tax credit helpline: 0845 300 3900
Further guidance on Childcare Vouchers and tax credits can be viewed at :
What happens to my Childcare Vouchers if I start or leave employment at the University of Glasgow part of the way through a month?
You will receive a proportion of the Childcare Vouchers you normally receive, pro rata to the proportion of the month that you are employed at the University of Glasgow.
Further Information (Scotland)
To find out if your child carer is registered contact:
The Care Commission
• By phoning 01382 207 200
All childcare in Scotland listed under www.childcarelink.gov.uk is registered care.
Further Information (England)
To find out if your child carer is registered or approved contact:
Office for Standards in Education (OfSted)
• By phoning 0845 601 4771;
On the Internet at www.ofsted.gov.uk: quoting the Unique Reference (URN) for registered childcare. This number will appear on your child carer’s last registration certificate.