Update: Childcare Vouchers During Statutory Maternity Leave

If you are an Employer:

HMRC change regarding Childcare Vouchers during Statutory Maternity Leave

HMRC have recently revised their guidance regarding the payment of Childcare Vouchers during Statutory Maternity Leave.

As of 14 September 2016 the following paragraph has been removed from the Employer Handbook “E18: how can you help your employees with childcare”: “Childcare vouchers are an employer provided non-cash benefit. Employer provided benefits provided under a contract of employment must continue to be provided whilst an employee is absent from work on maternity leave. This applies even if the employee is getting no pay or only getting SMP.”

As a result of this removal of the requirement to provide Childcare Vouchers on behalf of employees who are on Statutory Maternity Leave and receiving no pay or only getting SMP you may wish to review your employee contracts and or staff handbook. We would recommend you seek legal advice before making any such changes.

If you are an Employee:

HMRC change regarding Childcare Vouchers during Statutory Maternity Leave

HMRC have recently removed the requirement for employers to provide Childcare Vouchers on behalf of employees who are on Statutory Maternity Leave and receiving no pay or only getting SMP. You should check with your employer for more information as to how this may affect your current or future Childcare Voucher entitlement.