NIM02441 | Class 1: - non-cash vouchers - exemptions - definition of "childcare"

Regulation 25 and paragraph 7 of Part 5 of Schedule 3 Social Security (Contributions) Regulations 2001

NIM02440 explains that a non-cash voucher (see NIM02413) for childcare is disregarded for Class 1 NICs purposes,

For the purposes of this exemption, “childcare” includes:

• care provided in accordance with Part 10 or 10A of the Children Act 1989 (child minding and day care for young children)

• in the case of a child aged 8 or over, care provided by a child minder

• in the case of a child aged under 8, care provided by a child minder where that care does not exceed, in total, two hours a day

where the care is provided by:

• a “nanny” as defined in section 71(13) of the Children Act 1989. That section provides that a nanny is a person who is employed to look after a child by:

  • a parent of the child; or

  • a person who is not a parent of the child but who has parental responsibility; or

  • a person who is a relative of the child and who has assumed responsibility for their care.a “relative” as defined in section 105(1) of the above Act as meaning a grandparent, brother, sister, uncle, aunt or step-parent

• care provided during out-of-school hours or during school holidays

• full-time and part-time care. Application of this exemption to Northern Ireland.

The above definition applies to Northern Ireland with the following differences:

• in the second bullet above, for “aged 8 or over” read “aged 12 or over”; and

• in the third bullet, for “aged under 8”, read “aged under 12”.