Quote:
Originally Posted by chrisl
Based on the fact i am a one man band limited company i was trying to find out the best way to pay for my child care.
Two kids that cost me £800 per month in childcare costs.
Being either a higher rate or basic rate taxpayer, would it still be worth while claiming the whole £800 in vouchers and suffering the tax and NI consequences for me and my company as im going over the £55 per week.
I just thought i would ask here before i tryed to work it out myself.
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The basic answer is that you would usually be better off taking it as a dividend than a benefit-in-kind. However, there is one shimmy of which I have only recently become aware.
There are some childcare voucher companies that claim that you can fund unlimited levels of childcare through your company tax-free by claiming to have an employer-sponsored creche. HMRC acknowledge this possibility and the following link (and sublinks) gives their stance on it:-
http://www.hmrc.gov.uk/manuals/eimanual/EIM21920.htm
I did have the details of one company offering this but can't recall it off the top of my head. If anyone is interested, I can find out.
These schemes seem aggressive but if the companies are dotting all the appropriate is and crossing the ts, I don't see any reason why they shouldn't work.