SCHEDULE 3U.K. PAYMENTS TO BE DISREGARDED IN THE CALCULATION OF EARNINGS FOR THE PURPOSES OF EARNINGS-RELATED CONTRIBUTIONS

PART VU.K. CERTAIN NON-CASH VOUCHERS TO BE DISREGARDED AS PAYMENTS IN KIND

[F17.—(1) A qualifying childcare voucher, subject to the qualifications in sub-paragraphs (2) and (5).U.K.

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

(3) The exempt amount is the amount found by the formula—

Here—

E is the sum of—

(a)

£50; and

(b)

the administration costs for the qualifying childcare voucher;

QW is the number of qualifying weeks—

(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

(b)

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

(4) 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 any of those employments.

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

(6) For the purposes of this paragraph—

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

(b)“qualifying childcare voucher” and “qualifying week” have the meanings given in section 270A of the Income Tax (Earnings and Pensions) Act 2003;

(c)the administration costs for a voucher means the difference between the cost of provision of a voucher and its face value; and

(d)the face value of a voucher 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.]

Textual Amendments