If there is space available under the WKR (Work-Related Expense Scheme) and the conditions for using the WKR can be met, you can designate this as final tax wage. As a result, you can reimburse this untaxed for your employees and the babysitting credit may not be considered as wages. If there is no space available under the WKR, it may be that the babysitting credit is considered as (additional) wages and the usual wage costs will need to be paid on this. We recommend checking this with your financial department or externally involved accountant and tax advisor.