The Social Security (Contributions) (Amendment No. 4) Regulations 2011

Amendment of the Social Security (Contributions) Regulations 2001

3.  After paragraph 6A insert—

“Interpretation – qualifying childcare vouchers

6B.   In paragraphs 7 and 7A—

(a) “care”, “child” and “parental responsibility” have the same meaning as in section 318B of ITEPA 2003(1);

(b) “chargeable expense” has the meaning given in paragraph 14 of Schedule 2;

(c) “qualifying child care” has the same meaning as in section 318C of ITEPA 2003;

(d) “qualifying week” means a tax week in respect of which a qualifying childcare voucher is received;

(e) “relevant salary sacrifice arrangements” means arrangements (whenever made) under which the employees for whom the vouchers are provided give up the right to receive an amount of general earnings or specific employment income in return for the provision of the vouchers;

(f) “relevant flexible remuneration arrangements” means arrangements (whenever made) under which the employees for whom the vouchers are provided agree with the employer that they are to be provided with the vouchers rather than receive some other description of employment income;

(g) “relevant low-paid employees” means any of the employer’s employees who are remunerated by the employer at a rate such that, if the relevant salary sacrifice arrangements or relevant flexible remuneration arrangements applied to them, the rate at which they would then be so remunerated would be likely to be lower than the national minimum wage;

(h) “scheme” means the manner by which an employer provides qualifying childcare vouchers and an employee is taken to join a scheme or have joined a scheme when the employer has agreed that vouchers will be provided to the employee under the scheme and there is a child falling within Condition A of paragraph 7(7); and

(i) the administration costs for a voucher means the difference between the cost of provision of a voucher and its face value and the face value is the amount stated on or recorded in the voucher as the value of the provision of care for a child that may be obtained by using it.”.

(1)

Sections 318B and 318C of ITEPA 2003 were inserted by paragraph 1 of Schedule 13 to the Finance Act 2004 (c. 12).