---
title: Child Care Benefit for UK Employers | SideUp
description: "Help working parents with the childcare costs funded hours don't cover: nursery top-ups, childminders, wraparound and holiday clubs, on one SideUp card."
---
[Skip to main content](https://hi.sideup.com/en-gb/child-care#main-content)
[](https://hi.sideup.com/?hsLang=en-gb)
- Solutions
Tax-free Benefits
HMRC-compliant, tax free benefits for core needs.
[Homeworking Allowance & Equipment Home working costs and kit](https://hi.sideup.com/en-gb/work-from-home?hsLang=en-gb) [Work-Related Training & Tuition Learning linked to the job](https://hi.sideup.com/en-gb/work-related-training-tuition?hsLang=en-gb) [Nursery Partnership Workplace nursery places](https://hi.sideup.com/en-gb/child-care) [Bike Share Pass Cycling for the commute](https://hi.sideup.com/en-gb/commuting?hsLang=en-gb) [DSE Eyecare Eye tests and screen glasses](https://hi.sideup.com/en-gb/dse-eyecare?hsLang=en-gb) [Canteen Credit Meals at work](https://hi.sideup.com/en-gb/food?hsLang=en-gb) [Retirement Guidance Pension advice for your team](https://hi.sideup.com/en-gb/financial-education?hsLang=en-gb) [Payroll Giving Give to charity before tax](https://hi.sideup.com/en-gb/charitable-giving?hsLang=en-gb)
Lifestyle Benefits
Flexible budgets for everyday life. Give your team the power of choice.
[Wellness & Fitness Gym, mental health & wellbeing](https://hi.sideup.com/en-gb/wellbeing-fitness?hsLang=en-gb) [Pet Care Vets, food and pet insurance](https://hi.sideup.com/en-gb/pet-care?hsLang=en-gb) [Food & Meal Meals, groceries & nutrition](https://hi.sideup.com/en-gb/food?hsLang=en-gb) [Personal Learning & Growth Courses for personal growth](https://hi.sideup.com/en-gb/work-related-training-tuition?hsLang=en-gb) [Commuting Allowance Travel to and from work](https://hi.sideup.com/en-gb/commuting?hsLang=en-gb) [Leisure & Connection Entertainment, coffee and travel](https://hi.sideup.com/en-gb/work-from-home?hsLang=en-gb) [Charitable Giving Support the causes you love](https://hi.sideup.com/en-gb/charitable-giving?hsLang=en-gb)
- Platform
For Employers
Set budgets, track spend and stay compliant, all from one platform.
[Manage Benefits Budgets, eNPS and recognition](https://hi.sideup.com/en-gb/manage-your-platform?hsLang=en-gb) [Integrations Connect with your favourite tools](https://hi.sideup.com/integrations?hsLang=en-gb) [Trust Centre Security, privacy and compliance](https://hi.sideup.com/en-gb/trust?hsLang=en-gb)
For Employees
One card and one app for every benefit, so spending is simple.
[How to spend benefits Discover how to use your SideUp card](https://hi.sideup.com/en-gb/how-to-spend-your-benefits?hsLang=en-gb)
- [Stayconomics](https://hi.sideup.com/stayconomics?hsLang=en-gb)
Learn with Stayconomics
Explore the ideas, research, and strategies behind workplaces people choose to stay in.
[Blog Data-backed, no-fluff articles on retention, benefits, and the future of work.](https://hi.sideup.com/stayconomics/tag/blog?hsLang=en-gb) [Podcast On Youtube and Spotify with the leaders who are actually figuring it out.](https://hi.sideup.com/stayconomics/podcast?hsLang=en-gb) [Newsletter The best of what's happening in HR and employee retention, curated, concise, and worth your Monday morning.](https://hi.sideup.com/stayconomics/tag/newsletter?hsLang=en-gb) [Events & Webinars Real experts, real questions, real takeaways you can use before the week is over.](https://hi.sideup.com/stayconomics/events-webinars?hsLang=en-gb) [Explore by Topics Retention, benefits, HR tech, financial wellness, and more, organized by what you need.](https://hi.sideup.com/stayconomics/topics-1?hsLang=en-gb) Guides & Tools Iterative Tools and Guides
- Company
Know more about us
Who we are, who we work with and how to reach us.
[Partnerships Grow with us, as a partner, reseller or local business.](https://hi.sideup.com/en-gb/partnership?hsLang=en-gb) About us The story and the people behind SideUp. Brandbook Our logo, colours and voice, ready to use. [Contact us Questions, ideas or a demo? Say hello.](https://hi.sideup.com/en-gb/contact-us?hsLang=en-gb)
- Log in
- [Business](https://hi.sideup.com/en-gb/admin.sideup.com?hsLang=en-gb)
- [Employee](https://hi.sideup.com/en-gb/app.sideup.com?hsLang=en-gb)
[Book a demo](https://meetings-eu1.hubspot.com/lana-leles/demo)
- Solutions
- Tax-free Benefits
- [Homeworking Allowance & Equipment](https://hi.sideup.com/en-gb/work-from-home?hsLang=en-gb)
- [Work-Related Training & Tuition](https://hi.sideup.com/en-gb/work-related-training-tuition?hsLang=en-gb)
- [Nursery Partnership](https://hi.sideup.com/en-gb/child-care)
- [Bike Share Pass](https://hi.sideup.com/en-gb/commuting?hsLang=en-gb)
- [DSE Eyecare](https://hi.sideup.com/en-gb/dse-eyecare?hsLang=en-gb)
- [Canteen Credit](https://hi.sideup.com/en-gb/food?hsLang=en-gb)
- [Retirement Guidance](https://hi.sideup.com/en-gb/financial-education?hsLang=en-gb)
- [Payroll Giving](https://hi.sideup.com/en-gb/charitable-giving?hsLang=en-gb)
- Lifestyle Benefits
- [Wellness & Fitness](https://hi.sideup.com/en-gb/wellbeing-fitness?hsLang=en-gb)
- [Pet Care](https://hi.sideup.com/en-gb/pet-care?hsLang=en-gb)
- [Food & Meal](https://hi.sideup.com/en-gb/food?hsLang=en-gb)
- [Personal Learning & Growth](https://hi.sideup.com/en-gb/work-related-training-tuition?hsLang=en-gb)
- [Commuting Allowance](https://hi.sideup.com/en-gb/commuting?hsLang=en-gb)
- [Leisure & Connection](https://hi.sideup.com/en-gb/work-from-home?hsLang=en-gb)
- [Charitable Giving](https://hi.sideup.com/en-gb/charitable-giving?hsLang=en-gb)
- Platform
- For Employers
- [Manage Benefits](https://hi.sideup.com/en-gb/manage-your-platform?hsLang=en-gb)
- [Integrations](https://hi.sideup.com/integrations?hsLang=en-gb)
- [Trust Centre](https://hi.sideup.com/en-gb/trust?hsLang=en-gb)
- For Employees
- [How to spend benefits](https://hi.sideup.com/en-gb/how-to-spend-your-benefits?hsLang=en-gb)
- [Stayconomics](https://hi.sideup.com/stayconomics?hsLang=en-gb)
- Learn with Stayconomics
- [Blog](https://hi.sideup.com/stayconomics/tag/blog?hsLang=en-gb)
- [Podcast](https://hi.sideup.com/stayconomics/podcast?hsLang=en-gb)
- [Newsletter](https://hi.sideup.com/stayconomics/tag/newsletter?hsLang=en-gb)
- [Events & Webinars](https://hi.sideup.com/stayconomics/events-webinars?hsLang=en-gb)
- [Explore by Topics](https://hi.sideup.com/stayconomics/topics-1?hsLang=en-gb)
- Guides & Tools
- Company
- Know more about us
- [Partnerships](https://hi.sideup.com/en-gb/partnership?hsLang=en-gb)
- About us
- Brandbook
- [Contact us](https://hi.sideup.com/en-gb/contact-us?hsLang=en-gb)
- Log in
- [Business](https://hi.sideup.com/en-gb/admin.sideup.com?hsLang=en-gb)
- [Employee](https://hi.sideup.com/en-gb/app.sideup.com?hsLang=en-gb)
- [Book a demo](https://meetings-eu1.hubspot.com/lana-leles/demo)
[](https://hi.sideup.com?hsLang=en-gb)
- Solutions ▼
### Pre-tax Benefits
IRS-compliant, pre-tax benefits for core needs.
- [Student Loan & Tuition Smarter Education Funding](https://hi.sideup.com/student-loan-repayment-benefits?hsLang=en-gb)
- [Commuter Pre-tax transit & parking](https://hi.sideup.com/commuting?hsLang=en-gb)
- [HRA Health Reimbursement Arrangement](https://hi.sideup.com/hra?hsLang=en-gb)
- [Family Care Real support for caregivers](https://hi.sideup.com/family-care?hsLang=en-gb)
### Lifestyle Spending Accounts
Flexible, post-tax benefits for modern life. Give your team the power of choice.
- [Wellness & Fitness Gym, mental health & wellbeing](https://hi.sideup.com/wellness-fitness?hsLang=en-gb)
- [Work From Home Home office & remote setup](https://hi.sideup.com/work-from-home?hsLang=en-gb)
- [Food Meals, groceries & nutrition](https://hi.sideup.com/food?hsLang=en-gb)
- [Utilities & Essential Bills Internet, phone & household bills](https://hi.sideup.com/utilities-essentials-bills?hsLang=en-gb)
### ENPS
Measure and improve employee satisfaction in real time.
- ENPS Employee Net Promoter Score
### Recognition
Celebrate your team and build a culture of appreciation.
- [Recognition Peer to peer & manager recognition](https://hi.sideup.com/recognition?hsLang=en-gb)
- Platform ▼
### For Employers
- [Manage Benefits Streamline your benefits administration](https://hi.sideup.com/how-to-manage-benefits?hsLang=en-gb)
- [Integrations Connect with your favorite tools](https://hi.sideup.com/integrations?hsLang=en-gb)
- [Security & Compliance Enterprise-grade security standards](https://hi.sideup.com/security-compliance?hsLang=en-gb)
### For Employees
- [How to spend benefits Discover how to use your SideUp card](https://hi.sideup.com/how-to-spend-your-benefits?hsLang=en-gb)
Log in ▼
- [Login as admin](https://hi.sideup.com/en-gb/admin.sideup.com?hsLang=en-gb)
Book a demo
[](https://hi.sideup.com?hsLang=en-gb)
Solutions
#### Pre-tax Benefits
- [Student Loan & Tuition](https://hi.sideup.com/student-loan-repayment-benefits?hsLang=en-gb)
- [Commuter](https://hi.sideup.com/commuting?hsLang=en-gb)
- [HRA](https://hi.sideup.com/hra?hsLang=en-gb)
- [Family Care](https://hi.sideup.com/family-care?hsLang=en-gb)
#### Lifestyle Spending Accounts
- [Wellness & Fitness](https://hi.sideup.com/wellness-fitness?hsLang=en-gb)
- [Work From Home](https://hi.sideup.com/work-from-home?hsLang=en-gb)
- [Food](https://hi.sideup.com/food?hsLang=en-gb)
- [Utilities & Essential Bills](https://hi.sideup.com/utilities-essentials-bills?hsLang=en-gb)
#### ENPS
- ENPS
#### Recognition
- [Recognition](https://hi.sideup.com/recognition?hsLang=en-gb)
Platform
#### For Employers
- [Manage Benefits](https://hi.sideup.com/how-to-manage-benefits?hsLang=en-gb)
- [Integrations](https://hi.sideup.com/integrations?hsLang=en-gb)
- [Security & Compliance](https://hi.sideup.com/security-compliance?hsLang=en-gb)
#### For Employees
- [How to spend benefits](https://hi.sideup.com/how-to-spend-your-benefits?hsLang=en-gb)
[Login as admin](https://hi.sideup.com/en-gb/admin.sideup.com?hsLang=en-gb)
Book a demo
Child Care
# Childcare support that fills the gaps
Funded hours help, but they don't cover every hour, every holiday or every family. Give working parents a flexible childcare budget for nursery top-ups, childminders, wraparound care and holiday clubs.
Support your working parents
.png?width=520&height=520&name=FSA%20936x936%20(6).png "FSA 936x936 (6)")
## Childcare is a workforce issue
Funded hours have helped, but they don't cover everything. Full-time nursery costs for three- and four-year-olds rose 9% in England this year, and prices keep climbing in Scotland and Wales. (Coram Childcare Survey 2026)
67%
### of under-fives are in formal childcare
That's around 2 million children in England. For most working parents, childcare is what makes work possible.
*Source: DfE, Childcare and Early Years Survey of Parents 2025*
23%
### have quit a job or study over childcare costs
When childcare doesn't add up, talent walks out of the door.
*Source: Theirworld, 2023*
75%
### feel guilty or anxious taking time off for childcare
Unplanned absences weigh on performance and wellbeing. Flexible support takes the pressure off.
*Source: Remote, Working Parents Survey 2023*
.png?width=936&height=936&name=FSA%20936x936%20(29).png)
HOW CAN I USE THIS BENEFIT?
## Laura
Operations Director - Leeds, UK
Finding reliable after-school care for her son was a constant source of stress for Laura. With SideUp, she could pay for his after-school club directly, lifting a weight off her shoulders and helping her stay focused at work.
.png?width=936&height=936&name=FSA%20936x936%20(30).png)
HOW CAN I USE THIS BENEFIT?
## Tom
Account Executive - Cardiff, UK
School holidays used to mean a scramble for Tom and his partner. With SideUp, he could book holiday clubs for the summer without using up all his annual leave.
.png?width=936&height=936&name=FSA%20936x936%20(31).png)
HOW CAN I USE THIS BENEFIT?
## Aisha
Graphic Designer - Bristol, UK
Aisha's funded hours cover the mornings, but her working day doesn't end at lunchtime. With SideUp, she could top up her daughter's nursery place, so a full day at work finally adds up.
## Great talent is built on a foundation of support
When you show up for your team's life outside of work, they bring more focus, loyalty and dedication to their work inside it. A Child Care budget helps parents cover the costs funded hours don't.
### Nursery & Pre-school
Top-ups beyond funded hours, extra days
### Childminders & Nannies
Registered childminders, nannies
### Wraparound Care
Breakfast clubs, after-school clubs
### Holiday Clubs
Summer, half-term and holiday clubs
### Custom Bundle
Mix and match what your team needs.
Build Bundle
## Three ways to support childcare, and how HMRC sees each one
Not all childcare support is taxed the same way. Here's the difference in plain English, and where SideUp fits in.
Without a partnership
### Child Care budget
Lifestyle benefit
Taxable
What it covers
Nurseries, childminders, nannies, wraparound care and holiday clubs.
How it works
You set a monthly budget. Parents pay any eligible provider with their SideUp card.
SideUp's role
Runs the whole benefit for you.
If you have a partnership
### Nursery Partnership
Section 318 ITEPA 2003
Tax-free, if the conditions are met
What it covers
Registered nursery settings only. Care in a private home, such as a childminder, doesn't qualify.
How it works
Your company partners with a nursery and genuinely shares its financing and management. It can run through salary sacrifice.
SideUp's role
Pays your partner nursery directly, with every payment tracked.
Closed to new joiners
### Childcare vouchers
Includes directly-contracted childcare
Tax-free, legacy members only
Who can use it
Employees who joined their employer's scheme before 4 October 2018 and have stayed in it.
Worth knowing
Parents still receiving vouchers can't use the government's Tax-Free Childcare at the same time.
SideUp's role
Not offered. Existing schemes stay with your current provider.
**Works alongside government support.** A SideUp Child Care budget can sit on top of funded hours and Tax-Free Childcare, which adds up to £2,000 a year per child.
A summary, not tax advice. Check your arrangement with a tax adviser.
## See How SideUp Works in 4 Easy Steps
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01\.
### Choose your benefits
Decide which benefits you want to offer and who they apply to.
02\.
### Implement your policy
Set your budget, eligibility rules, and spending limits. Our platform handles the compliance and guardrails automatically.
03\.
### Connect to payroll
Seamlessly integrate with your existing payroll provider. We handle the tax implications and reporting for you.
04\.
### Join the SideUp platform
Invite your team. They get their cards, you get the credit for being an amazing employer. Everyone wins.
## Set it up once. Your team feels it every week.
Most spending happens on the card, so there's almost nothing to chase. Here's how it works, from day one.
1. 1
### Add your employees
Sync your team from your HR system, or add them manually. Either way, it takes minutes.
2. 2
### Set up your programme
Choose your benefits, decide when they're paid out, and pick how your company funds them.
3. 3
### We invite your team
SideUp emails each employee an invitation to the app. Once they've completed onboarding, their card is issued.
4. 4
### Manage it month by month
Track spend and take-up, and keep your compliance information in one place, ready whenever you need it.
Child Care
Laura Bennett•••• 3157
After-school club
Paid on Monday
£72.00
Holiday club
October half-term
£185.00
Child Care budget this month
£257 of £300
Illustrative example
REAL IMPACT, MEASURED IN RESULTS
## The numbers don't lie
Based on SideUp’s internal research comparing clients **with** vs. **without** flexible stipends. When you give employees choice, the numbers speak for themselves.
+35
eNPS Points
Clients using SideUp consistently score +35 points higher than those relying on standard perks.
Is your culture healthy or at risk?
Get your free Diagnostic →
\+ 23%
Profit
Employees who are happy with their benefits are more productive and can increase a company’s revenue by up to 23%.
10x
ROI
For every $1 spent on SideUp stipends, companies save $10 in retention costs and productivity gains.
The SideUp Marketplace
## Every pound goes further. And stays local.
Our marketplace brings your team closer to the independent cafés, gyms, shops and services in their own neighbourhood. When they spend their SideUp budget there, they unlock exclusive discounts and freebies, so the same benefit buys more.
✓
Exclusive discounts for SideUp members
✓
Freebies and extras from local partners
✓
Your benefits budget, backing local businesses
[List your business](https://hi.sideup.com/en-gb/marketplace?type=list&hsLang=en-gb)[Nominate a local favourite](https://hi.sideup.com/en-gb/marketplace?type=nominate&hsLang=en-gb)
A Saturday on the high street
The Corner Café
£8.95
Marketplace discount
−£1.35
Northside Yoga Studio
£12.00
Free mat hire
Freebie
Saved this month
£9.60
Illustrative example
FAQ
## Frequently Asked Questions
Everything you need to know about Child Care benefits in the UK.
What does a Child Care benefit cover?
Nursery and pre-school fees, registered childminders and nannies, breakfast and after-school clubs, and holiday clubs. You choose which categories are eligible.
Is a Child Care benefit taxable?
Yes. Child Care is a Lifestyle benefit, so it's treated as a taxable benefit in the same way as your other Lifestyle benefits. In return, it gives you full flexibility over which providers and types of care your team can use.
Are there cases where childcare support isn't taxable?
Yes, HMRC sets out three. Workplace nurseries, run by the employer alone or in a genuine partnership where the employer shares the financing and management, are exempt from tax and National Insurance, including through salary sacrifice. Childcare vouchers and directly-contracted childcare are also exempt, but only for employees who joined their employer's scheme before 4 October 2018 and have stayed in it. Each exemption comes with strict conditions, so SideUp's standard Child Care benefit is a flexible, taxable Lifestyle benefit.
We have a nursery partnership. Can SideUp pay the nursery?
Yes, through Nursery Partnership. If your company has a workplace nursery partnership with a registered nursery, SideUp can be your payment rail: we pay your partner nursery directly, with spending restricted to that nursery, so every payment has a clear audit trail. Whether those payments are exempt from tax depends on your partnership meeting HMRC's conditions under section 318 ITEPA 2003, not on how they're paid, so we recommend confirming your arrangement with your tax adviser.
Does it work alongside funded hours and Tax-Free Childcare?
Yes. Funded hours cover a set number of hours, mostly in term time, and Tax-Free Childcare adds up to £2,000 a year per child. Tax-Free Childcare is only off-limits to parents still receiving childcare vouchers or directly-contracted childcare, and a SideUp Child Care budget is neither. Employees should check their own eligibility on GOV.UK.
How much should we offer?
You decide. Set a monthly budget per employee, and choose who it applies to.
Does a Child Care benefit help with retention?
Yes. Working parents are more likely to stay when their employer helps with the realities of childcare, and more likely to leave when it doesn't.
How does SideUp handle it?
Employees pay eligible providers with their SideUp card, within the budgets and categories you set. Every payment is tracked automatically.
## Show working parents you've got their back
### Ready to modernise your benefits?
Join hundreds of forward-thinking companies using SideUp to attract and retain top talent. Book a demo to see Child Care in action.
[](https://hi.sideup.com/?hsLang=en-gb)
The flexible benefits platform that helps employees choose how support shows up in their real lives.
Book a demo
#### Products
- [Student Loan & Tuition](https://hi.sideup.com/student-loan-repayment-benefits?hsLang=en-gb)
- [Wellness & Fitness](https://hi.sideup.com/wellness-fitness?hsLang=en-gb)
- [Work from Home](https://hi.sideup.com/work-from-home?hsLang=en-gb)
- [Family Care](https://hi.sideup.com/family-care?hsLang=en-gb)
- [Food](https://hi.sideup.com/food?hsLang=en-gb)
- [Utilities & Essential Bills](https://hi.sideup.com/utilities-essentials-bills?hsLang=en-gb)
- [HRA](https://hi.sideup.com/hra?hsLang=en-gb)
- ENPS
- [Recognition](https://hi.sideup.com/recognition?hsLang=en-gb)
#### Platform
- [Manage Benefits](https://hi.sideup.com/how-to-manage-benefits?hsLang=en-gb)
- [Integrations](https://hi.sideup.com/integrations?hsLang=en-gb)
- [Security & Compliance](https://hi.sideup.com/security-compliance?hsLang=en-gb)
- [Ways to spend benefits](https://hi.sideup.com/how-to-spend-your-benefits?hsLang=en-gb)
#### Privacy
- [Privacy Policy](https://hi.sideup.com/privacy-policy?hsLang=en-gb)
- Cookie Policy
- [Terms and Conditions](https://hi.sideup.com/terms-conditions?hsLang=en-gb)
#### Log in
- [Web Portal login](https://business.us.sideup.com/login#/?sign_up_fallback_redirect_url=https%3A%2F%2Fbusiness.us.sideup.com%2Fhome&sign_in_fallback_redirect_url=https%3A%2F%2Fbusiness.us.sideup.com%2Fhome&redirect_url=https%3A%2F%2Fbusiness.us.sideup.com%2F)
- [Admin dashboard login](https://customer.us.sideup.com/login?sign_up_fallback_redirect_url=https%3A%2F%2Fcustomer.us.sideup.com%2Fhome&sign_in_fallback_redirect_url=https%3A%2F%2Fcustomer.us.sideup.com%2Fhome&redirect_url=https%3A%2F%2Fcustomer.us.sideup.com%2F)
[](https://sideup.com)
Pay your team more. Spend less.
### Tax Free Benefits
- [Homeworking Allowance & Equipment](https://hi.sideup.com/en-gb/work-from-home?hsLang=en-gb)
- [DSE Eyecare](https://hi.sideup.com/en-gb/dse-eyecare?hsLang=en-gb)
- [Work-Related Training & Tuition](https://hi.sideup.com/en-gb/work-related-training-tuition?hsLang=en-gb)
- [Canteen Credit](https://hi.sideup.com/en-gb/food?hsLang=en-gb)
- [Canteen Credit](https://hi.sideup.com/food?hsLang=en-gb)
- [Bike Share Pass](https://hi.sideup.com/en-gb/commuting?hsLang=en-gb)
- [Retirement Guidance](https://hi.sideup.com/en-gb/financial-education?hsLang=en-gb)
- [Nursery Partnership](https://hi.sideup.com/en-gb/child-care)
- [Payroll Giving](https://hi.sideup.com/en-gb/charitable-giving?hsLang=en-gb)
### Lifestyle
- [Child Care](https://hi.sideup.com/en-gb/child-care)
- [Pet Care](https://hi.sideup.com/en-gb/pet-care?hsLang=en-gb)
- [Wellbeing & Fitness](https://hi.sideup.com/en-gb/wellbeing-fitness?hsLang=en-gb)
- [Food & Meal](https://hi.sideup.com/en-gb/food?hsLang=en-gb)
- [Financial Education](https://hi.sideup.com/en-gb/financial-education?hsLang=en-gb)
- [Commuting Allowance](https://hi.sideup.com/en-gb/commuting?hsLang=en-gb)
- [Leisure & Connection](https://hi.sideup.com/en-gb/commuting?hsLang=en-gb)
- [Charitable Giving](https://hi.sideup.com/en-gb/charitable-giving?hsLang=en-gb)
### Plataform
- [Manage your Platform](https://hi.sideup.com/en-gb/how-to-spend-your-benefits?hsLang=en-gb)
- [Integrations](https://hi.sideup.com/en-gb/integrations?hsLang=en-gb)
- [Trust](https://hi.sideup.com/en-gb/trust-1?hsLang=en-gb)
- [How to spend benefits](https://hi.sideup.com/en-gb/how-to-spend-your-benefits?hsLang=en-gb)
- [Business Platform](https://hi.sideup.com/en-gb/admin.sideup.com?hsLang=en-gb)
- [Employee Portal](https://hi.sideup.com/en-gb/customer.sideup.com?hsLang=en-gb)
### Company
- [About us](https://hi.sideup.com/en-gb/?hsLang=en-gb)
- [Partnerships](https://hi.sideup.com/en-gb/partnership?hsLang=en-gb)
- [Brandbook](https://hi.sideup.com/en-gb/?hsLang=en-gb)
- [Terms & Conditions](https://hi.sideup.com/en-gb/terms-conditions?hsLang=en-gb)
- [Privacy Policy](https://hi.sideup.com/en-gb/privacy-policy?hsLang=en-gb)
- [Contact us](https://hi.sideup.com/en-gb/contact-us?hsLang=en-gb)
SideUp is not a bank. SideUp Visa® cards are issued by Stripe Payments UK Limited, an electronic money institution authorised by the Financial Conduct Authority (firm reference number 900461) for the issuing of electronic money and the provision of payment services. Cards are issued under the Visa card scheme pursuant to a licence from Visa Europe Limited. SideUp Limited. Registered in England & Wales, Company No. 15200782. Registered office: 35 Charles Square, London, England, N1 6HT. Information on this website is a general summary, not tax advice.
© 2026 SideUp. All rights reserved.
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"mainEntity" : [ {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Nursery and pre-school fees, registered childminders and nannies, breakfast and after-school clubs, and holiday clubs. You choose which categories are eligible."
},
"name" : "What does a Child Care benefit cover?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Yes. Child Care is a Lifestyle benefit, so it's treated as a taxable benefit in the same way as your other Lifestyle benefits. In return, it gives you full flexibility over which providers and types of care your team can use."
},
"name" : "Is a Child Care benefit taxable?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Yes, HMRC sets out three. Workplace nurseries, run by the employer alone or in a genuine partnership where the employer shares the financing and management, are exempt from tax and National Insurance, including through salary sacrifice. Childcare vouchers and directly-contracted childcare are also exempt, but only for employees who joined their employer's scheme before 4 October 2018 and have stayed in it. Each exemption comes with strict conditions, so SideUp's standard Child Care benefit is a flexible, taxable Lifestyle benefit."
},
"name" : "Are there cases where childcare support isn't taxable?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Yes, through Nursery Partnership. If your company has a workplace nursery partnership with a registered nursery, SideUp can be your payment rail: we pay your partner nursery directly, with spending restricted to that nursery, so every payment has a clear audit trail. Whether those payments are exempt from tax depends on your partnership meeting HMRC's conditions under section 318 ITEPA 2003, not on how they're paid, so we recommend confirming your arrangement with your tax adviser."
},
"name" : "We have a nursery partnership. Can SideUp pay the nursery?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Yes. Funded hours cover a set number of hours, mostly in term time, and Tax-Free Childcare adds up to £2,000 a year per child. Tax-Free Childcare is only off-limits to parents still receiving childcare vouchers or directly-contracted childcare, and a SideUp Child Care budget is neither. Employees should check their own eligibility on GOV.UK."
},
"name" : "Does it work alongside funded hours and Tax-Free Childcare?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "You decide. Set a monthly budget per employee, and choose who it applies to."
},
"name" : "How much should we offer?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Yes. Working parents are more likely to stay when their employer helps with the realities of childcare, and more likely to leave when it doesn't."
},
"name" : "Does a Child Care benefit help with retention?"
}, {
"@type" : "Question",
"acceptedAnswer" : {
"@type" : "Answer",
"text" : "Employees pay eligible providers with their SideUp card, within the budgets and categories you set. Every payment is tracked automatically."
},
"name" : "How does SideUp handle it?"
} ]
}
```