Compare providers
Workplace nursery scheme providers, compared.
The tax rules are the same whoever you choose. The fee, the paperwork and what actually reaches the nursery are not. Here is what to look for, and how Kinsail measures up.
Head to head
Weighing Kinsail against someone specific?
The checklist
What good looks like, and where Kinsail stands.
| What to check | What good looks like | Kinsail |
|---|---|---|
| What the employer pays | One clearly stated fee you can model before you sign. | A management fee of 15% of the salary sacrifice amount plus VAT, paid by the employer. |
| What employees pay | Nothing that eats into the parent’s saving. | Nothing. Employees pay Kinsail nothing. |
| What the nursery receives | A defined contribution, spent on agreed improvements and evidenced. | 8.7% of the amount sacrificed, spent on improvement priorities agreed with the setting. |
| Choice of nursery | Parents keep the nursery their child already attends. | Any registered setting can join, with national coverage across the UK. |
| The employer’s role | Real involvement in the nursery provision, made simple to run. | A structured meeting with the nursery, prepared with our OFSTED Analysis Tools. |
| What they say about HMRC | A plain reference to the published guidance, and no claim of approval. | Built in accordance with HMRC’s published guidance under Section 318 ITEPA 2003. |
| Admin for HR and payroll | Contracts, changes and reminders handled for you. | Agreements signed online, and changes made on the platform for future months. |
Kinsail details are from our current standard terms. Savings depend on salary, tax band and nursery fees. This is general information, not tax advice.
Before you sign
Six questions to ask any provider.
Put these to everyone on your shortlist, us included. The answers will tell you most of what you need to know.
Can you explain the fee in one sentence?
You should hear a percentage, who pays it and whether VAT is added. If the explanation leans on a tax saving rather than the service, ask why.
Will my employees pay anything?
Any charge to parents comes straight off the saving that made the benefit worth offering. Ask for the answer in writing.
Can parents keep their nursery?
The benefit only works if families can use it where their child already goes. Ask how a nursery joins and how long it takes.
How is the employer involved?
The arrangement relies on the employer genuinely taking part in the nursery provision. Ask how that is organised and recorded, year after year.
Where does the nursery’s money go?
The contribution should fund agreed improvements at the setting, with the spending evidenced. Ask how priorities are chosen and checked.
What do you claim about HMRC?
HMRC does not approve arrangements in advance, so “HMRC approved” is a warning sign. Ask which published guidance the arrangement follows.
Got a proposal from another provider? We will go through it with you.
Book a demoCommon questions
What does a workplace nursery benefit provider do?
A provider sets up and runs the benefit for the employer: the agreements with the employer, the employee and the nursery, the salary sacrifice figures for payroll, the employer’s involvement in the nursery provision and the payments to the nursery.
How much does Kinsail cost an employer?
Kinsail charges a management fee of 15% of the salary sacrifice amount plus VAT, paid by the employer. Employees pay Kinsail nothing.
Can employees use any nursery?
Any registered setting that is not wholly or mainly a private dwelling can join the Kinsail network, so in almost every case parents keep the nursery their child already attends.
Is any workplace nursery arrangement HMRC approved?
HMRC does not approve arrangements in advance, and no provider can truthfully tell you otherwise. Kinsail is built in accordance with HMRC's published guidance under Section 318 ITEPA 2003.
How long does it take to set up?
The employer, nursery and employee agreements are all signed online, so you can launch without everyone needing to sign the same document. Book a call and we will map out the timings for your team.
New to the benefit? Start with the complete guide, or see how it compares with Tax-Free Childcare in the childcare schemes comparison.
Ask us the hard questions.
Book a 30-minute call and we will answer all six, with our agreements in front of you.