There is an annual obligation for employers to complete a Basic Earnings Assessment.
This is for employees that joined an Employer-Supported Childcare (ESC) arrangement like the childcare voucher between 06 April 2011 and when the arrangement ended on 04 October 2018.
Simply, the Basic Earnings Assessment is required because post 06 April 2011 entrants do not have an automatic entitlement to Income Tax and National Insurance relief at £2,915 per annum (the £55 per week and £243 per month). The exempt amount of relief depends on the employee’s anticipated earnings in the next tax year and their estimated marginal rate of tax.
So, for tax year 2024/25 (starting soon), the relief amount may vary from that which applied in 2023/24.
For Bookkeepers
Just because there is an exempt amount of, say, £243 per month in 2023/24 does not mean that this rate carries forward into the new tax year. It all depends on the anticipated marginal rate of tax in the next tax year (i.e. 2024/25). This only applies to employees that are still employed and joined the Employer-Supported Childcare (ESC) arrangement between 06 April 2011 and 04 October 2018.
