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Your employer can offer you support with childcare costs in two ways:
- By providing childcare vouchers
- By directly paying your registered provider eg nursery
Your employer would run a scheme with the help of a childcare voucher company and pay that company and admin fee for their service.
The voucher company will either provide you with childcare vouchers or provide your employer with the vouchers who will then allocate to staff.
Childcare vouchers or direct payments to nursery are exempt from tax and national insurance contributions.
You only pay tax and national insurance on the reduced level of your salary.
This will save you money on childcare costs.
This allowance is per person so effectively you will save double.