The Herde is here to help connect workplaces with nurseries so you can support employees to access tax and national insurance savings on their childcare fees, through the workplace nursery salary sacrifice scheme.
The Herde workplace nursery scheme allows employers to provide a benefit to their staff which is exempt from tax and national insurance contributions through a salary sacrifice arrangement, delivering significant savings to their childcare costs.
The workplace nursery benefit can be achieved by either a workplace opening a nursery on their own premises or by working in partnership with commercially operated nurseries.
Contact us to find out how we can support your employees whilst also reducing National Insurance costs.
The Herde workplace nursery salary sacrifice scheme enables eligible employees to enroll into a salary sacrifice arrangement to pay their child’s nursery fees. This enables them to pay nursery fees monthly, directly from their salary before tax, reducing the tax and national insurance contributions made.
The workplace will be required to contribute an additional 8% of the employee’s nursery fee, provided to the nursery monthly. You are also required to provide 2% of the child’s nursery fee to a central fund that provides request-based ad-hoc funding to any nursery that is part of The Herde, again paid monthly.
For example, an employee on £40,000 per year with nursery fees of £13,700 (average cost for a child under 3 in full time nursery) would sacrifice £13,700 of their salary. The workplace then pays the nursery the nursery fees (£1,141.67) + 8% investment (£91.33) plus a 2% central fund fee (£22.83).
Yes! The Herde will work with all requested nurseries to set up an agreement. However, the scheme is only eligible for registered nurseries who meet financial stability requirements. Fees for childminders or in home nannies are not eligible for the scheme.