The Basic Earnings Assessment used to be simple when Employer-Supported Childcare (ESC) arrangements such as the Childcare Voucher was a straightforward £55 per week (£243 per month / £2,915 per annum) for all employees. Then, the Finance Act 2011 confirmed that Income Tax (and National Insurance) relief would be restricted for high earners to ensure they only received the same amount as someone paying at the Basic Rate.
This brought the advent of the Basic Earnings Assessment, a mandatory annual event for employers whereby they have to predict an employee’s marginal rate of Income Tax for the following tax year and restrict the ESC values in the payroll.
Then, of course, the Tax-Free Childcare scheme came along and gave rise to the abolition of the relief altogether for entrants after 04 October 2018.
There are many employees that fall into the category of being eligible for ESC arrangements. Therefore, the requirement to complete the Basic Earnings Assessment has not disappeared.