This arrangement will only be available to you if you are an employee of Bangor University and have parental responsibility for any child placed in the Nursery. This is one of the conditions required to ensure that a nursery place is not taxable as a benefit in kind.

The tax-efficient scheme is no different in principle to other salary exchange benefits offered by Bangor University (such as the Cycle to Work scheme). If you participate in the scheme, you will pay a reduced amount of tax and NIC and will therefore be better off each month.

As with other salary exchange benefits with Bangor University, you cannot reduce your salary to a level below the National Minimum Wage (NMW). You may therefore have to restrict the level of exchange under this scheme to ensure that your earnings still remain above this level.

Employees should be aware that a reduction in taxable salary may affect other University and state benefits such as Statutory Maternity Pay and Statutory Sickness Payments. It might also affect more general financial matters such as mortgage applications.

Tax credit entitlement is based upon the level of earnings you are receiving. Therefore if you are reducing your salary you may actually be entitled to more in tax credits. There may, however be a potential adverse affect on the childcare element of the Working Tax Credit (WTC) you are entitled to.

If you are currently claiming the childcare element of WTC, you should consider the likely impact on your net disposable income. In order to make a decision please contact the HM Revenue & Customs helpline on 0845 300 3900 or website: www.hmrc.gov.uk/taxcredits/

In the event you require childcare sessions outside those you have already agreed to under salary sacrifice arrangement, then at present, the cost of these additional sessions will need to be made outside the salary exchange scheme.

If you would like to withdraw from the scheme, please continue as you currently do and give four week’s notice of the changes you would like to make, both to HR and to the Nursery Manager. This will enable you to enter into a revised salary exchange agreement which reflects the new childcare arrangements required.

You can exchange the full costs of the fees for your children as long as the reduction does not take your salary to below the NMW.

The salary sacrifice arrangement with the Nursery will run from 01 September to 31 August each year. This means that you will only be able to opt out of the proposed arrangement during September unless you qualify for a lifestyle change within this period, or other exceptional circumstances and this will be at the discretion of the University.

As you are giving up your right to an element of your salary, there will be a need to amend your terms and conditions of employment. This will be done via an amendment to your contract, authorising us to reduce your salary based upon the childcare you require.

If you wish to participate in the salary sacrifice scheme, you can elect to do so by completing the Tax-Efficient Nursery Provision Scheme Form and emailing it to benefits@bangor.ac.uk

You will be required to select the level of salary exchange you require until September, when you will again have the opportunity to change your arrangements for the year ahead.