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Removing tax breaks on childcare vouchers will not only affect working parents but organisations too

The Government’s move to scrap tax exemptions on childcare vouchers may in fact harm employers that do not see the financial value of retaining the scheme, says the Institute of Payroll Professionals (IPP), the UK’s leading membership body for payroll professionals.

The IPP believes that eliminating tax breaks on childcare vouchers will demotivate employers to maintain the scheme because the cost of administering them is paid for by the savings on National Insurance.

The Institute also thinks that companies are at risk of losing one of the most popular and sought after employee benefits and will no longer be able to reap the rewards of using the scheme as a recruitment and retention tool.

Karen Thomson, Associate Director of Policy, Research and Strategic Visibility of the IPP, said: “There are a large number of employers that have invested time and money in planning and implementing salary sacrifice schemes to help their staff take advantage of the tax savings afforded to them by the Government. And by offering tax relief on childcare vouchers to employees, companies enabled many working mothers to go back to work.

“However, if Gordon Brown’s proposals to withdraw tax exemptions are to go ahead, this will cause numerous problems for employers. Some companies may not see the financial value of including the childcare voucher scheme in their employee benefits packages which will inevitably have an effect on recruitment and retention. One potential situation is the departure of experienced staff due to the high cost of providing childcare.”

If you want to sign a petition that urges the Government not to scrap tax exemptions on the childcare voucher scheme, visit: http://petitions.number10.gov.uk/keepvouchers/.

ENDS

For more information on the IPP, please contact:

Christian Musgrave
Redkite PR
Tel: 0113 258 7938
E-mail: christian@redkitepr.co.uk

About the IPP:

The IPP is a 24 year-old membership organisation that wants to achieve chartered status (formerly known as The Institute of Payroll and Pensions Management until Sept 2006).

What the IPP offers:

• Training and professional qualifications
• Professional designatory letters, e.g. MIPP (pensions)
• An Advisory Service with up to date online industry news
• Continuing Professional Development programme encouraging self improvement and career development structure
• A monthly journal called PayrollProfessional
• Recruitment: full time, part time and temporary
• Representation at the highest levels of Government through a very active policy team
• Participation in a long range strategy to change the perception of the payroll profession
• Regular events, meetings, conferences.

For more information on the IPP, visit www.payrollprofession.org.

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Written by PayPerShop.com - or reproduced on behalf of the company supplying the above information.

Filed under: Press Releases on October 28th, 2009

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