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Contents3 Introduction

5 Guide for employers

6 How to start a scheme: Employers

9 Guide for employees

10 Using your vouchers

13 How to start a scheme: Employees

14 Guide for carers

15 Frequently asked questions

kidsunlimited Childcare Vouchers are operated by kidsunlimited, one of the UK’s most innovative and progressive providers of private and corporate childcare.

kidsunlimited Childcare Vouchers are a simple and easy way for employers to help their employees reduce the cost of their childcare.

Whether you are an employer, employee or childcarer this guide will provide you with all the information that you need about this straightforward and effortless childcare voucher scheme.

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HSBC Testimonial

HSBC has been in partnership with kidsunlimited for 19 years and they currently manage the bank’s four workplace nurseries as well as administrating both of the HSBC’s Childcare Schemes detailed below.

In October 2005, HSBC introduced a new Childcare Scheme offering its parents the option to use either Designated Nurseries or kidsunlimited Childcare Vouchers. Designated Nurseries are major nursery chains that HSBC are partnering and who offer discounted rates to our employees.

kidsunlimited helped design the website to ensure all of the schemes’ details are clear and user friendly for parents and they remain jointly responsible for updating and maintaining the site.

kidsunlimited act as a main point of contact and provide a helpdesk for parents who use this service and are responsible for the administration of the scheme and payments to providers.

HSBC Childcare has a very strong working relationship with kidsunlimited.

A guide for employersWith childcare costs rising all the time, fi nancial support for working parents is always an attractive

part of any employee benefi ts package.

kidsunlimited Childcare Vouchers are a simple way for you to offer that support, up to a value of £55 per week per employee, or £243 per month.

Because they are so fl exible and because they’re becoming more and more popular with nurseries, nannies, childminders and playgroups across the UK, kidsunlimited Childcare Vouchers are viewed as one of the higher value benefi ts you can offer - a clear signal to employees that they, and their families, are valued by their employer.

It means you’ll be able to attract and retain high calibre staff and offer a valued benefi t in an evolving competitive employment market.

What’s involved?

Savings

Number of Employees Using Vouchers 25 50 75 100 200

Estimated Employer Annual Savings £7,680 £15,360 £23,040 £30,720 £61,440

Based on average voucher value for £200 per employee, per month, “contracted in” NI rate

Once you’ve set up a kidsunlimited Childcare Vouchers scheme for your employees, very little on your part.

We’ll look after all the administration and payments, assist in making sure payroll reductions are made, ensure vouchers are credited to individual employees’ accounts or issue paper vouchers at the appropriate time.

You can offer kidsunlimited Childcare Vouchers to employees as a subsidy towards their childcare costs, as part of a fl exible benefi ts package or in exchange for a portion of their earnings in a salary sacrifi ce scheme.

Which option you choose, of course, is down to your personal preferences and your internal policies.

Operating a salary sacrifi ce scheme has the added advantage of being a ‘no cost’ benefi t to your operations. In fact, it can actually save you money as you do not have to make employers’ NI payments on the amount of salary employees give up in exchange for their kidsunlimited Childcare Vouchers.

With a minimum sacrifi ce of £10 per month and a maximum of £243, you can work out for yourself the likely value of the savings you’ll enjoy, or use our calculator at www.kidsunlimited.co.uk to assist you.

There will also be further benefi ts that will be derived from raised morale, increased productivity and reduced absence levels among a workforce whose employer is looking after its interests.

kidsunlimited Childcare Vouchers charge a small commission fee for administrating the scheme. However you will still benefi t through substantial savings.

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How to start a scheme: Employers Registering your organisation for the kidsunlimited Childcare Vouchers scheme is very simple, easy and hassle free.The scheme must be available to all employees and kidsunlimited Childcare Vouchers will provide you with a detailed implementation plan to ensure this is achieved. This will comprise of detailed advertising and marketing literature including:

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Employees sign up to the scheme by completing the kidsunlimited Childcare Vouchers application form. The application form is signed by the employer as this represents a change to the employees’ terms and conditions of employment.

All application forms are returned to kidsunlimited Childcare Vouchers where we will perform all necessary childcare registration and National Minimum Wage checks.

kidsunlimited Childcare Vouchers issue the employer with an invoice and payroll schedule on a pre-agreed date in advance of running the payroll. The employer reduces the employee’s salary by the amount stated on the payroll schedule.

The employer pays the invoice total to kidsunlimited Childcare Vouchers on their employees’ normal payday.

Once payment is received, kidsunlimited Childcare Vouchers will automatically transfer the employee’s voucher value to their nominated childcarer’s bank account, allocate the voucher values to the internet facility, bank the voucher values for later use or issue a paper voucher for the employee to use as payment to their chosen Childcare Provider.

kidsunlimited Childcare Vouchers issue remittance statements, either via email or hard copy to the childcarers each time payments are made.

Once the scheme is up and running you will need to notify HMRC and inform them about the salary sacrifi ce arrangements. You can download a letter template as a guide from www.kidsunlimited.co.uk

You can register simply by calling us on 08000 326 777

• Brochures• Posters and leafl ets• Editorials

• Payslip attachments • Roadshows and workshops at key sites

• E-Flyer campaigns

All literature is also available in PDF format at www.kidsunlimited.co.uk so that you can advertise on your Intranet site.

How the scheme works:

6

The University of Reading Testimonial

The University of Reading set up the kidsunlimited Childcare Vouchers scheme in June 2006 and the volume of staff joining the scheme continues to increase each month.

The University has been pleased with the service offered by kidsunlimited and particularly with the staff team who have always been both helpful and professional and clearly have a good knowledge of the scheme.

The implementation phase of the scheme was a great success with kidsunlimited playing a signifi cant part in this success, especially in terms of support with marketing of the scheme.

The University has also been impressed with the way the staff team at kidsunlimitedhave promptly rectifi ed any issues that have arisen regarding the scheme.

Royal London Testimonial

During the implementation of kidsunlimited Childcare Vouchers at Royal London, the kidsunlimited team were always on hand for help and advice and were more than willing to bespoke their internal processes to fi t with our own organisation’s. We had a tight timescale for the initial implementation and launch of the scheme and the kidsunlimited team pulled out all the stops to ensure that everything was rolled out on time and in a professional manner. The ongoing day-to-day relations with the team have been excellent and their staff are very helpful in resolving queries and ensuring that the scheme runs smoothly.

A guide for employeesIf you’re a working parent, kidsunlimited Childcare Vouchers are an easy, straightforward way to make your childcare costs more affordable.

That is because they are exempt from both income tax and National Insurance Contributions up to a value of £55 per week or £243 per month, providing your childcarer has the necessary registration.

You can receive them in addition to your basic salary or through “salary sacrifi ce” whereby you exchange a certain amount of your salary for vouchers that you can then use to pay your registered childcare provider.

In fact, if you and your partner both work and you both decide to get the maximum £243 per month in vouchers to which you’re entitled, you could save up to £2,390 a year in tax and National Insurance!

Savings

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Monthly Voucher Value Standard Tax Rate Annual Savings

Higher Tax RateAnnual Savings

£243 £904 £1195

£200 £744 £984

£150 £558 £738

£100 £372 £492

£50 £186 £246

Using your vouchersIt couldn’t be easier

Once you’ve let your employer know that you wish to register for kidsunlimited Childcare Vouchers and we’ve checked you’re eligible, your vouchers will be paid into a specially set up kidsunlimited Childcare Vouchers account once a month, or other frequency depending on when you receive your pay.

How you use them is up to you:

Either leave it to us to make an automatic payment from your account to your childcare provider when you receive your vouchers, or manage your own account online if your childcare costs vary in amount or frequency, or you can be issued with a paper voucher that you can pass on to your childcare provider as full or part payment.

Of course, if your childcare fees exceed the value of your vouchers, you’ll have to pay the balance to your carer yourself.

Who’s entitled to kidsunlimited Childcare Vouchers?

You can join the kidsunlimited Childcare Vouchers scheme if:

• You are the parent or legal guardian of a child under 16 years of age who is in full or part time childcare.

• Your nursery, playgroup, nanny, childminder or after school club is a registered childcare provider.

• Your earnings, after your kidsunlimited Childcare Vouchers salary sacrifi ce, remain above the national minimum wage.

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Conwy and Denbighshire NHS Trust Testimonial

Conwy and Denbighshire NHS Trust began working with kidsunlimited Childcare Vouchers in August 2006. As a large NHS Trust with over 5,500 staff, many of whom are working parents, the savings and incentives of childcare vouchers were a benefi t we wanted to ensure was available to all our working parents.

To ensure the scheme was a success, an exciting but realistic marketing plan tailored individually to our organisation was created by kidsunlimited Childcare Vouchers and fully supported by their staff, to ensure that the benefi ts of childcare vouchers were clear.

The individual marketing plan, involved professional posters, fl yers, application packs and the launch of monthly “care-clinics” (a kind of one stop shop for staff who are parents).

In just 10 months of successfully operating the scheme, the volume of staff joining continues to rise at a rapid pace. When staff were recently asked their opinion on childcare vouchers it appears its success has been largely due to the continual support available, a professional and personable voucher provider and the fact that they have genuinely noticed a saving on the cost of childcare every month.

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How to start a scheme:

EmployeesSetting up your kidsunlimited Childcare Vouchers account is a quick and easy processJust follow these simple steps:

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Speak to your childcarer to inform them that they will be receiving a payment through kidsunlimited Childcare Vouchers. It is simple and easy for childcarers to register as they can use the same form as you at the back of this brochure. Alternatively they can download and complete the Childcarer section on the Application Form and send it on to us.

If your childcarer is already registered with us, just put their name and address on your signed application; we’ll have their bank details and all the other information about them we need.

Complete your kidsunlimited Childcare Vouchers Application Form (you’ll fi nd it in the back of this brochure or you can download it at www.kidsunlimited.co.uk) and give it to your employer to sign. They will forward it to us. This form also serves as an amendment to your contract of employment.

After your eligibility has been confi rmed, we’ll send you your kidsunlimited Childcare Vouchers account details and internet site password if you’ve requested one.

You can register simply by calling us on 0845 365 2999From the date of your next salary payment, your employer will reduce your gross salary by however much you’ve chosen to sacrifi ce as childcare vouchers, paying it to us instead. We’ll then credit your kidsunlimited Childcare Vouchers account with vouchers to the same value.

Payment OptionsOn the application form you will have the choice of fi ve options when signing up to the

kidsunlimited Childcare Vouchers scheme:

kidsunlimited Childcare Vouchers will make payments to your childcarer’s bank account automatically upon receipt of funds from your employer.

kidsunlimited Childcare Vouchers will bank your voucher values each month. When necessary you must contact kidsunlimited Childcare Vouchers by email, letter or fax to release payment to your nominated childcarer.

The same process as Option 1, however you will be able to see all transactions through the online facility that have been made by kidsunlimited Childcare Vouchers to childcarers and view the balance on your account.

You will have full responsibility for your account through the online facility. This allows you to make payments as and when you want to. The childcarer will then receive the payment within 4 working days.

kidsunlimited Childcare Vouchers will issue you with a paper voucher. You can use this paper voucher as full or part payment. Your childcare provider will need to redeem the voucher through our internet facility or by telephone.

Option 1 Automatic Payments

Option 2 Managed Account

Option 3View Only

Option 4Full Access

Option 5Paper Vouchers

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FlexibilityYou can sign up to the scheme for a fi xed period - 3,6,9 or 12 pay periods - or an ongoing basis, depending upon the nature of your childcare requirements.

A guide for carersYou’ll probably already know about childcare vouchers. Some of your parents may even be paying part or all of their fees with vouchers at the moment.

So what makes kidsunlimited Childcare Vouchers so different?

Cancelling or making changes to your kidsunlimited Childcare Vouchers membership.

Agreeing to a salary sacrifi ce scheme involves changing the terms of your contract with your employer, so you will be bound by its conditions for the period of time selected on your application form.

HMRC accept that changes will need to be made to childcare voucher values and you can therefore exit or change your voucher value at anytime according to your employer’s policies. Some organisations state you must join for a set period of time and can only change as a result of a ‘life changing event’.These may include:

• A reduction in hours or salary

• Marriage, divorce or separation

• Starting or returning from maternity leave

• Birth or adoption of another child

• A change in childcare arrangements

• A change in your spouse or partners circumstances

• Relocation

• Death of dependent

• Long-term absence form work

A dedicated kidsunlimited Childcare Vouchers helpdesk is available between 8.00am and 6.00pm Monday to Friday, to assist you with any questions you have. The helpline number is 0845 365 2999

Simply the fact that they’re so much easier, more straightforward and less time consuming to administer than other voucher schemes.

kidsunlimited Childcare Vouchers give you a guaranteed, secure payment straight into your bank account.

You’ll also receive clear remittance and payment histories to help make things easier when you come to do your books.

There is also a dedicated internet site you can use to trace payments and see how much, when, and on whose behalf kidsunlimited Childcare Vouchers payments have been made to you.

All you have to do to join the scheme is complete a simple application form.

Am I eligible to become a ‘kidsunlimited childcare vouchers’ carer?To take advantage of payment by kidsunlimited Childcare Vouchers, you need to be registered as a day nursery, childminder, after-school or pre-school playgroup, holiday club or nanny. All the children in your care must be under 16.

As long as you meet the criteria (we will carry out independent checks to verify the status of all applicants), you can join the kidsunlimited Childcare Vouchers scheme.

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Frequently asked questionsUnsure about something? Find the answer here

What is salary sacrifi ce?

It’s a way of reducing your gross salary in exchange for another kind of benefi t. Sacrifi cing salary means changing your terms and conditions of work with your employer.

An HMRC guide to salary sacrifi ce is available from your tax offi ce or online to download at: www.hmrc.gov.uk/specialist/salary_sacrifi ce.pdf

Is there a minimum and maximum amount I can sacrifi ce?

Yes. The maximum is £55 per week or £243 per month. The minimum amount is £10 per month.

What if my salary goes down?

If your salary is reduced to the extent that your sacrifi ce takes it below the minimum wage, you will need to adjust the amount you sacrifi ce or withdraw from the scheme. Your terms and conditions of employment will need to change to refl ect this.

What if my personal circumstances change?

Normally, you will be bound by the terms and conditions of your new contract during the period you select to receive kidsunlimited Childcare Vouchers. However, HMRC accept that changes will need to be made. Therefore you can exit the scheme or change your voucher value according to your employer’s policies.

What if I pay a different amount for childcare each month?

If your payments vary from month to month, or are made at a different time to your salary, you can either manage your payments using our online facility or instruct us by post, e-mail or fax when you need to pay your carer.

How will it affect my pension?

That depends on your particular pension scheme. You will need to contact your Pensions Administrator who will give you more details.

Will my maternity benefi t be affected?

Your Statutory Maternity Pay will be based on your reduced salary. Talk to your payroll department to see how far in advance of your due date you would need to leave the scheme in order for your SMP to remain unaffected.

Please note however that if your baby is due on or after 5th October 2008 and you choose to stay in the scheme, although your SMP will be reduced, you will be entitled to continue receiving childcare vouchers from your employer throughout your period of maternity leave. For further information please contact your employer.

Will it affect any mortgage offer?

Not usually. Employers generally will give a salary reference based on your notional salary, in other words, your actual salary plus the value of your salary sacrifi ce.

Will it be classed as benefi t in kind?

Only if you receive over £55 in kidsunlimited Childcare Vouchers each week on top of your salary.

Will the childcare element of my Working Tax Credit be affected?

It could be... but it may actually be in your favour. Tax Credit is worked out on your total taxable income, and as you receive less of it when you make your salary sacrifi ce, your WTC entitlement could actually go up.

However, your kidsunlimited Childcare Vouchers benefi t means you’ll be paying less in real terms for childcare...

and this might have the effect of lowering the amount you can claim in the childcare element of WTC.

Everybody’s circumstances are different, so HMRC have produced an on-line calculator which can help you decide which benefi t is better for you. You will fi nd it at:www.hmrc.gov.uk/calcs/ccin.htm

Can I use my vouchers for more than one child and more than one carer?

Yes. As long as your children are under 16 and their carer accepts payment from kidsunlimited Childcare Vouchers.

Can both parents join the scheme?

Yes, if they meet all the requirements, which means the savings can be as high as £2,390 pa.

What notice do I need to leave the scheme?

You need to give us at least one month’s notice in writing of your intention to leave the voucher scheme.

How are childcarers paid?

Through a secure BACS transfer to their bank account. Any additional fees above your kidsunlimited Childcare Vouchers allowance will have to be met by you.

Can I use my vouchers for irregular childcare, during school holidays for instance?

Yes. You can simply ‘bank’ your vouchers for when you need to use them. Just let us know as and when you want to pay for childcare, or select the internet facility when you complete the application form.

What happens if I leave my job?

No further payments will be made and you will need to make alternative arrangements for paying your childcarer directly.

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LegislationTax and employment is a complex and ever changing fi eld, with new laws and fresh schemes being introduced all the time. Any changes in legislation that might affect you as a working parent or employer will be posted at www.kidsunlimited.co.uk

kidsunlimited Childcare Vouchers application form

By signing this agreement consent is being given for the data to be processed by kidsunlimited. The data will only be processed for the purposes of the application and not, for example, for marketing purposes or passed to any other business. If you do not provide this consent the helpline service will not be available to you. All data will be processed in accordance with the principles of the Data Protection Act 1998.

*Please supply a copy of the certifi cate

Employee Personal Details

Payroll No.

Forename

Address

Home Tel. Work Tel.

Date of Birth

NI No.

Surname (Mr/Mrs/Miss/Ms)

Postcode

E-mail

Mother’s Maiden Name

Signing up to the scheme

By signing this Application all parties agree to the terms and conditions outlined in the kidsunlimited Childcare Vouchers Scheme Guide.I confi rm that I agree to a change to my contract of employment with the Employer as set out in this Application Form. In exchange for a reduction in gross salary I will be entitled to the benefi t of participation in the kidsunlimited Childcare Vouchers scheme.I confi rm that my salary will be reduced by the amount stated above for the number of pay periods that have been requested.

Signed by (EMPLOYEE NAME) Date Signed for and on behalf of employer Date

Salary Sacrifi ce

How often are you paid? Monthly Four Weekly Fortnightly Weekly How many pay periods do you wish to sign up for? 3 6 9 12 Ongoing(please circle) (please circle)

1st month on scheme (fi rst reduction in salary) Amount of kidsunlimited Childcare Vouchers £

(Maximum £243 monthly, £220 four weekly, £110 fortnightly, £55 weekly)National Minimum Wage (NMW)Gross Basic Annual Salary £ Weekly contracted hours

OFFICE USE ONLY

Salary after childcare reduction Hourly Rate Initialled by Complies with NMW? YES NO

kidsunlimited Childcare Vouchers detailsPayment Options? 1. Automatic Payments 2. Managed Account 3. View Only 4. Full Access 5. Paper Vouchers

(For more information see page 13)(please circle payment option)

NOTE: Please complete in CAPITAL LETTERS ONLY

Employer Name

Address

E-Mail

PayDay Invoice Date

Contact Person

Postcode

Tel. Fax

(The date by which kidsunlimited Childcare Vouchers will issue the invoice to meet payroll cut off )

Allow Internet Access? Yes No How did you hear about kidsunlimited?

Employer Details - (If your employer is already registered please just complete employer name)

(Please complete all sections of the form. Failure to do so could result in a delay in joining the scheme)

Childcarer

Business Name & Address

Postcode:

Tel email

Nominated Person

OFSTED/Care Commission/CSIW registration No.*

Reference No. for remittance advice

Carer Type: Nursery Childminder Holiday Club

(please tick) Nanny After School Other

Childcarer Details Bank Name

Bank Address

Postcode:

Account No. Sort Code

Roll No.

Account in the Name of

* Signature of Childcarer

Name of signatory

Position

* Childcarer signing up to the scheme

(If your childcare is already registered please just complete childcare name and address)

Child/Children Details Relationship to Employee

Child 1. Forename Surname D.O.B Gender

Child 2. Forename Surname D.O.B Gender

The childcarer agrees to:

(a) Provide information, as requested by kidsunlimited, in relation to the operation of the kidsunlimited Childcare Vouchers scheme.

(b) Accept kidsunlimited Childcare Vouchers as payment for its childcare services but not deal in them for any other purpose.

(c) Ensure that the value of kidsunlimited Childcare Vouchers paid by kidsunlimited is allocated entirely to the cost of the childcare provided

to the named employee (which may be less than the cost of the childcare).

(d) Keep complete records of all transactions involving kidsunlimited Childcare Vouchers.

(e) Have and maintain a UK bank account which can receive BACS payments and provide details of the bank account to kidsunlimited.

Any changes must be notifi ed to kidsunlimited with a minimum of 14 days’ notice.

(f ) Raise any administrative queries in writing or by telephoning 0845 365 2999.

Intellectual property rights

kidsunlimited owns Intellectual Property Rights in and arising out of the kidsunlimited Childcare Vouchers scheme. The Childcarer shall

make no claim over those rights and only use the ‘kidsunlimited Childcare Vouchers’ trademark for the sole benefi t of kidsunlimited.

kidsunlimited gives the Childcarer

(a) permission to use the Trade Mark (in the form stipulated) solely for the purpose of promoting and operating the kidsunlimited Childcare

Vouchers scheme; and

(b) the right to refer to itself as a “member of the kidsunlimited Childcare Vouchers scheme”.

Confi dentiality & Data Protection

The Childcarer agrees not to use or communicate any confi dential information regarding kidsunlimited that has been acquired through

participation in the kidsunlimited Childcare Vouchers scheme. The Childcarer shall comply with the Data Protection Act 1998 and process

data only as necessary to administer the kidsunlimited Childcare Vouchers scheme and not use it to compete or to promote its own or

a third party business.

Registration and other legal requirements

The Childcarer confi rms that all requirements necessary to operate legally have been complied with and that the registration particulars

given are correct. The Childcarer shall immediately give notice in writing to the other parties if the Childcarer’s registration with the

appropriate authorities as a provider of childcare expires or is terminated or if they are convicted of any criminal offence (other than a

road traffi c offence) and in those circumstances any party may terminate this Agreement forthwith.

Eligible Childcarers Include:

- Registered Nursery

- Registered Childminder

- Registered Holiday Playscheme/After-School-Clubs

- Registered Nanny

- Any registered childcarers

kidsunlimited Childcare VouchersTelephone: 08000 326 777Summerfi elds Village Centre, Dean Row Road, Wilmslow, Cheshire, SK9 2TAE-mail: kuvouchers@kidsunlimited.co.uk

www.kidsunlimited.co.uk

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