Earlier this month the ECJ ruled that employers should pay VAT on retail vouchers handed out to staff as part of their salary sacrifice scheme. This landmark ruling has caused a bit of a stir in the employee benefits industry, with speculation that other salary sacrifice schemes could be open to review.

One of the first things to be called in to question has been Childcare Vouchers, and I’ve seen a couple of articles suggesting that HMRC will investigate whether this rule should be applied to them or not.

I wanted to reassure all our customers and parents that HMRC do not intend to apply this rule to Childcare Vouchers, and we have had the following confirmation from them, “businesses supplying Childcare Vouchers to its employees in similar circumstances to the provision of retail vouchers…will not have to account for VAT on the value of the Childcare Vouchers. This is because the supply of childcare is exempt from VAT.”

They have also confirmed that they are, “…considering whether this will have an effect on the amount of VAT that the business can recover in respect of fees charged by Childcare Voucher Providers. Pending HMRC’s review of the case, businesses that provide their staff with Childcare Vouchers may continue to recover this VAT.”

We are in regular contact with HMRC and as soon as we receive an update on this, we’ll make sure you’re the first to know.

For more information there’s an FAQ section in the HMRC Employer Helpbook (page 10). And if you’ve got any questions, why not leave me a comment, or get in touch on Twitter (@CCVouchers).

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With fewer schools running children’s summer clubs this year, I imagine some of you are currently struggling to find an alternative.

I was too until I happened to be chatting to another Dad in the playground recently. He mentioned that his son was going to specially arranged summer sports sessions at our local leisure centre. The sessions are held throughout the summer and are being run by a company called Little Superstars. I saw this as the perfect opportunity for my youngest son to finally have some tennis lessons, something I’ve been keen for him to do for a while.

It turned out that a few of his friends were intending to do the sessions, so we signed them all up for the same 2 weeks this summer. I’m hoping he’ll have the makings of a Wimbledon champion once the summer’s over.

So if you’re stuck for childcare, why not contact your local sports centre and see what’s on offer.

And remember, if you’re not using your vouchers for summer camps and clubs, you can bank them and use them in the new school year – it’s a great way to get a head start.

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I thought you might be interested in the recent report from the Family and Parenting Institute – The UK Family Friendly Report Card. They’ve looked at factors affecting families in the UK and graded them from A – D. The verdict: a very disappointing C-.

The report looks at the cost of raising a child, maternity and paternity leave and work/life balance – that phrase again sorry! Of most interest to me was the cost of raising a child until they’re 21 which they’ve valued at £800 a month and since last year, the cost of nursery places in the UK has increased by 5.1%. It’s little wonder that people find themselves torn between returning to work and staying at home.

As you know, when you’re a parent every penny counts and there are plenty of ways to save on childcare and out of school activity costs; childcare vouchers are a good example. But if you’re unsure of your options, speak to childcare professionals or ask your employer what’s available to you. You might find that you’re able to make a significant saving on your monthly childcare costs.

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I was reading this morning that the Government has ordered a review of the Early Years Foundation Stage (EYFS) framework guidance. The guidance includes learning goals for children under 5 and has historically split opinion amongst parents and childcarers. Some think it offers children the best start in life regardless of their background, whilst others believe the targets are unattainable and result in carers spending too much time pen pushing.

Dame Clare Tickell, chief executive of the charity Action for Children, will review the guidelines with the aim of establishing whether the framework is based on the latest research and whether it’s in the best interests of our young children.

You can read the full article on the BBC’s website.

What do you think to the EYFS and the planned review? Let me know your thoughts here, or on Twitter @CCVouchers.

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Following the budget announcement this afternoon it is apparent that belts will be being tightening in households across the country.

Whilst some benefits have changed, or been frozen – including a freeze on child tax benefits for the next three years – families can still take full advantage of those benefits that remain available to them.

Thousands of families who could benefit from childcare vouchers are not using them – and thousands more do not realise that they could be using them right up until their children are aged 16.

I would actively encourage parents to speak to their employers to determine how they could benefit from a scheme that does so much to help so many – but could help many more.

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