Hi,

Most employers offer childcare vouchers as a "salary sacrifice" - this means that you can receive up to £55 of your salary a week (or £243 a month) in the form of vouchers, and you do not have to pay National Insurance or tax on this amount.

The NI and tax exemption on childcare vouchers applies per parent rather than per child, so if your daughter's partner works for a company that also offers a childcare voucher scheme then he can opt to receive part of his salary in vouchers. This means that as a couple they could not only double the amount of their salary they receive in vouchers but also double the amount that is both tax and NI free.

If your daughter and her partner have a joint income of less that £58,175 a year (or £66,350 if their child is under one) and both work for more than 16 hours a week then they might also be able to claim child tax credit of up to £545 a year.

Parents on low incomes may also be eligible to claim for help with childcare costs through working tax credit and receive up to 80p per £1 spent on childcare up to £175 a week (or £300 for two or more children).

They best way to find out if they qualify for tax credit is to visit the HM Revenue & Customs website.

My company use a company called PES Consulting for Childcare Vouchers.

http://www.pesconsulting.co.uk/

Childcare Vouchers: http://www.pesconsulting.co.uk/services/childcare.htm

They Seem to be really good - provide online and paper vouchers and I'm saving About £1000 a year on Childcare Costs