We never expected this type of comments that we were entitled and rich A........e for providing low-cost child care to our employees. That we were undermining the whole network of daycare in the county.
This was not a single comment, it was several dozens. First, the tax implication of providing free daycare in the UK is horrible....for the users! What we have been told, is that the cost imputed to the USERS of the daycare will be the government's estimate of the cost of its own system. The fiscal impact to the USERS could be as high as £ 50 per day. So this could give rise to a tax liability of nearly £ 13,000 per employee. Granted some of that would be mitigated by family tax credits.
Our solution reduces the tax liability to zero since a charity is offering the services and family members are the daycare providers. The one issue we have is that family members MUST participate. That's why there are as many grandparents and siblings who have signed on.
Finally, our daycare is unusual because of its operating time from 5 am until noon.
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