Watch this video to understand more about setting up Childcare Salary Sacrifice for your employees
Here's a quick summary:
👶 Childcare Salary Sacrifice is managed through Kinsail, allowing employees to save on full tax and National Insurance on nursery fees — one of the most impactful benefits for employees' finances!
🏆 Great for recruitment & retention: Particularly brilliant for attracting talent, keeping staff, and supporting employees returning from maternity leave
⚙️ How it works: Agreement signed with Kinsail → company-specific link added to the platform → employees sign up → Kinsail reaches out to the nursery to get them on board
🏫 Nursery flexibility: Kinsail will contact any nursery not already on the scheme — they have a high success rate! (Note: a small number of providers are currently unable to partner with salary sacrifice schemes)
🧾 Payment flow: Monthly payroll reports downloaded from the Kinsail platform → deducted from employee gross salary → one consolidated invoice per month covering all employees on the scheme
💰 The savings breakdown (per £1,000/month nursery fees):
🟢 Basic rate taxpayer saves £280/month
🟣 Higher rate taxpayer saves £420/month
🤝 How the 15% employer NI saving is split:
Kinsail take 14% as an operator fee (over 50% of which goes back to the nursery)
Employer keeps 1% — making this a cost-positive benefit!
✉️ Interested? Get in touch and we'll get Kinsail to send over an agreement!