Paragraph 7A Qualifying childcare vouchers for eligible employees who joined a scheme on or after 6th April 2011, or before 6th April 2011 where there has been a break in employment or a 52 week break in receiving vouchers recommencing on or after 6th April 2011F1F2F14

A qualifying childcare voucher, where an F3eligible employee joined a scheme—

subject to the qualifications in sub-paragraphs (3) and (6).

In this paragraph a “qualifying childcare voucher” means a non-cash voucher in relation to which conditions A to D (see sub-paragraphs (7) to (11)) are met.

Where the chargeable expense of the voucher exceeds the exempt amount, only that amount shall be disregarded by virtue of sub-paragraph (1).

The exempt amount is the amount found by the formula—

Here—

• E is, in the case of an employee the sum of—

  1. (a)

     F4£25, if the relevant earnings amount for the tax year, as estimated in accordance with Condition D, exceeds the higher rate limit for the tax year;

  2. (b)

     £28, if the relevant earnings amount for the tax year, as estimated in accordance with Condition D, exceeds the basic rate limit but does not exceed the higher rate limit for the tax year; or

  3. (c)

     £55, in any other case; and

  4. (d)

     the administration costs for the qualifying childcare voucher;

• QW is the number of qualifying weeks—

  1. (a)

     for which the earner has been employed by the secondary contributor during the tax year in which the qualifying childcare voucher is provided; and

  2. (b)

     for which no other qualifying childcare voucher has been provided by the secondary contributor.

Where an earner has two or more employed earner’s employments, the earnings from which fall to be aggregated in accordance with regulation 14 or 15, the reference to the secondary contributor in paragraph (b) of the definition of QW is a reference to the secondary contributor in respect of any of those employments.

An earner is only entitled to one exempt amount even if childcare vouchers are provided in respect of more than one child.

Condition A is that the voucher is provided to enable an employee to obtain care for a child who—

Condition B is that the voucher can only be used to obtain qualifying child care.

Condition C is that the vouchers are provided under a scheme that is open—

• subject to sub-paragraph (10).

Where the scheme under which the vouchers are provided involves—

• Condition C is not prevented from being met by reason only that the scheme is not open to relevant low-paid employees.

Condition D is that the employer has, at the required time, made an estimate of the employee’s relevant earnings amount for the tax year in respect of which the voucher is provided.

In sub-paragraph (11) “the required time”, in the case of an employee, means—

In sub-paragraph (11) the “relevant earnings amount”, in the case of an employee provided with vouchers by an employer for any qualifying week in a tax year, and subject to sub-paragraph (14), means—

But if the employee becomes employed by the employer during the tax year, what would otherwise be the amount of the aggregate mentioned in sub-paragraph (13)(a) is the relevant multiple of that amount; and the relevant multiple is—

where—

• RD is the number of days in the period beginning with the day on which the employee becomes employed by the employer and ending with the tax year.

In sub-paragraph (13)(a) “relevant earnings” means—

For the purposes of sub-paragraph (13)(b) the following are “excluded amounts”—