How is this different from the old childcare vouchers?

It's a workplace nursery benefit, not vouchers (which closed to new joiners in 2018). It's a separate, uncapped part of the tax law with its own conditions under s318 ITEPA 2003.

Do we have to build a nursery?

No. The benefit works through partnerships with registered nurseries your employees already use — Halo handles the partnership and the compliance behind it.

How long does it take to set up?

The set-up chat takes a few minutes. Going live for your team follows once your evidence is in place — the dashboard shows exactly what's needed.

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The workplace nursery benefit · for employers

Everything you need to know about the workplace nursery benefit

Find out anything, see a live demo, book a call with our team, or set up Halo Pay for your employees — start wherever you like.

Designed around s318 ITEPA 2003 · independently reviewed, with written opinions, by global tax advisory firms.

Ask Halo · anything about the workplace nursery benefit

Hi 👋 Ask me anything about the workplace nursery benefit — how it works, the conditions to meet, and what it means for your team. When you're ready, I can line up a demo, a call, or get you set up with Halo Pay.

The guide

The workplace nursery benefit, explained

A long-standing part of UK tax law (ITEPA 2003, s318) — written so working families can reach more affordable childcare through their employer. Here's how it actually works.

What it is

A childcare benefit you offer your team — not a nursery you run. Your employees keep the registered nurseries they already use, and pay part of the fees from pre-tax salary.

The conditions

The exemption applies when the employer is genuinely involved in managing and financing the nursery provision — the s318 partnership conditions. Meet them and it's compliant; Halo is built to keep you on the right side of them.

What it means for families

Eligible employees pay their registered nursery from pre-tax pay, making childcare more affordable. There's no cap on the amount that can go through the benefit.

Why it's been out of reach

The rules are strict and the admin is real — evidence, the National Minimum Wage floor, an audit trail. Most employers never used it because running it properly was too involved.

Your part

You run your own benefit; Halo is the software underneath — eligibility, the nursery partnerships, the evidence, the audit pack, and family support.

What it costs

It's designed to run without adding a net cost line. The point isn't a new expense — it's a retention and participation benefit your team can actually use.

Independently reviewed. The model has written opinions from global tax advisory firms, who have reviewed how Halo applies the s318 conditions.

How is this different from the old childcare vouchers?: It's a workplace nursery benefit, not vouchers (which closed to new joiners in 2018). It's a separate, uncapped part of the tax law with its own conditions under s318 ITEPA 2003.
Do we have to build a nursery?: No. The benefit works through partnerships with registered nurseries your employees already use — Halo handles the partnership and the compliance behind it.
How long does it take to set up?: The set-up chat takes a few minutes. Going live for your team follows once your evidence is in place — the dashboard shows exactly what's needed.