The value of childcare vouchers that are tax and NI free is currently capped at £55 per week. From 6 April 2011 this cap will be restricted to £28 or £22 per week where the recipient employee is taxed at the 40% or 50% rates respectively. However, this restriction only applies to employees who join the employer’s childcare voucher scheme on or after 6 April 2011. If you or your employees have young children, setting up a childcare voucher scheme before 6 April 2011 could save you both tax and NI, particularly where the vouchers are provided in place of some salary. 

If you have questions about the operation of childcare voucher schemes do ask one of our tax experts.

Childcare vouchers – FAQs

http://www.hmrc.gov.uk/thelibrary/employer-qa.pdf