Excess Childcare Vouchers - Company Closure

[andrewc]

I've been running a self-administered childcare voucher scheme within my company for a few years now, and at the moment there is some £3000 of unspent childcare vouchers sitting in the company bank account.

Now, I'm about to start the process to close this company down. I assume that my options for this money are to:
- as a one-off, buy vouchers from one of the childcare voucher companies such as Kiddivouchers
- 'refund' the money back to the company from the childcare voucher 'account'

Am I correct with the above two assumptions? Are there any other possibilities? Are any of the childcare voucher companies even interested in doing a one-off transactions?

[Chris at CrunchAccounting]

Childcare Vouchers

Can I ask how you have accumulated £3,000 in unspent childcare vouchers?

Normally one of the following applies:
-your employees pay for childcare themselves and you pay them back
-you contract directly with a childcare provider, such as a commercial nursery or a child-minder
-you give your employees childcare vouchers

For the childcare vouchers to be exempt for reporting (P11D) with HMRC the limit is £55 a week, or £243 a month for basic rate income tax payers. If you pay in a lump sum, you will pass the limit and it will have to be reported on a P11D.

[TheCyclingProgrammer]

First post doesn't make much sense to me - either you've accumulated vouchers (which means you've issued vouchers to yourself) on a weekly basis and not used them, which is fine, you can do this, or you've not which means you've not accumulated anything and as Chris says above you can't pay out a lump sum.

[northernladuk]

Didn't someone ask a question about the worth of engaging an accountant. Hope he's reading this.

[andrewc]

I've been issuing myself (and my wife who is also an employee) vouchers. The amounts have been within the limits and are not fully used.

My accountant's initial advice was to say I'd better use them...

Any advice about the best way of handling this money? I'd rather keep it within the childcare 'system' (if possible), as I anticipate future expenses after the company closes down.

[northernladuk]

I've been issuing myself (and my wife who is also an employee) vouchers. The amounts have been within the limits and are not fully used.

My accountant's initial advice was to say I'd better use them...

Any advice about the best way of handling this money? I'd rather keep it within the childcare 'system' (if possible), as I anticipate future expenses after the company closes down.

Did you pose this question to your accountant? What did he say or did you not like his answer?

[andrewc]

As I put in above, the accountant only said that I better spend the money. I haven't yet pushed him further for more details. Really, I'm hoping that someone here can give advice, especially as I'm unsure that the accountant would have much practical experience in dealing with childcare voucher companies, and would know much about whether they'd be interested in dealing with me on a one-off basis.

[TheCyclingProgrammer]

OK, tricky one. You've issued vouchers and as your running your own scheme you essentially have a voucher account for the monetary value of all issued vouchers.

By shutting down your company you are effectively closing down your childcare voucher scheme so to me it seems like you have either a) see if there is a way of transferring the vouchers to another provider (not sure if this is possible) or b) use them.

I'd be surprised if you can just transfer the money from YourCo to you as its still not your money.

[northernladuk]

As I put in above, the accountant only said that I better spend the money. I haven't yet pushed him further for more details. Really, I'm hoping that someone here can give advice, especially as I'm unsure that the accountant would have much practical experience in dealing with childcare voucher companies, and would know much about whether they'd be interested in dealing with me on a one-off basis.

Well push him for more details. Why is he saying this, what does he think you should do, what happens if you don't. What's the bloody point of paying a professional for his knowledge of you won't use it?

[tractor]

....

Why do you need an accountant who will charge for their advice? Why do you need to ask the internet where you will get a host of conflicting advice?

Why don't you just phone HMRC and ask?