Income Tax (Earnings and Pensions) Act 2003 section 270AA

Meaning of "eligible employee"

Section 270AA defines who counts as an "eligible employee" for the purposes of the employer-supported childcare voucher exemption under section 270A, by setting out three conditions that must all be satisfied.

• The employee must have been employed by the employer immediately before the "relevant day" set by Treasury regulations and must have remained continuously employed since that date (Condition A).
• There must not have been any period of 52 consecutive tax weeks, ending on or after the relevant day, in which the employee did not receive at least one qualifying childcare voucher from the employer (Condition B).
• The employee must not have given the employer a written "childcare account notice" stating that they wish to leave the voucher scheme in order to open (or enable their partner to open) a childcare account under the Childcare Payments Act 2014 (Condition C).
• If any one of these three conditions is not met, the employee is not an eligible employee and cannot benefit from the section 270A exemption for employer-supported childcare vouchers.