Childcare Vouchers & Providers

[psychocandy]

I just pay childcare provider directly from the company each month. Its a variable amount I just make sure I dont go over the maximum for the year.

[minstrel]

Is this true? Do you have a link or anything? I was informed otherwise when I asked my acc so would be interested to read up

This HMRC link is old, but as far as I am aware the rules have not changed. The key point is that HMRC do not prescribe how the voucher must look as long as you don't exceed the limits.

http://webarchive.nationalarchives.g...dcareguide.pdf

If you choose to run the scheme in-house the following tips may help you to run your scheme effectively.

HMRC does not prescribe what a childcare voucher must look like, only that it is a voucher, stamp or similar document or token intended to enable a person to obtain the provision of care for a child. It is up to you how you design your vouchers but you should make sure that they cannot be used by your employees to pay for anything other than childcare and that they cannot be transferred or sold. It is recommended that best practice would be for the following information to appear on your vouchers.

• Your signature or company logo (to prevent fraud).
• The voucher value.
• A statement that the voucher is non-transferable.
• The employee’s name and payroll number and a number unique to each voucher (for you to identify vouchers as ones you have issued and in particular so you can replace any lost, stolen or defaced vouchers).
• Instructions for how the childcarer can claim payment.
• A space for the childcarer’s name and postal address, bank address and account number for making payment.

[minstrel]

I just pay childcare provider directly from the company each month. Its a variable amount I just make sure I dont go over the maximum for the year.

The only issue with this is that you can accrue vouchers from birth, but you can't pay for childcare directly in the initial months when no childcare is being provided.

[Lance]

The only issue with this is that you can accrue vouchers from birth, but you can't pay for childcare directly in the initial months when no childcare is being provided.

Take it from someone who had a child in full time child care from the second her mother finished maternity leave..... accruing the full amount from childbirth is far more than you need.

[eek]

Take it from someone who had a child in full time child care from the second her mother finished maternity leave..... accruing the full amount from childbirth is far more than you need.

Don't you mean even accruing the full amount from birth isn't enough to pay the full bill.

[pr1]

The only issue with this is that you can accrue vouchers from birth, but you can't pay for childcare directly in the initial months when no childcare is being provided.

But once they're created they're created forever (until claimed on) - so you can never convert them back to "cash" (comparing to edenred etc) - how do you account for that in the company to make sure you aren't "fraudulently" claiming tax relief?

[minstrel]

Take it from someone who had a child in full time child care from the second her mother finished maternity leave..... accruing the full amount from childbirth is far more than you need.

Not in London. Full time nursery is over £1k per month. How much were your nursery costs?

[minstrel]

But once they're created they're created forever (until claimed on) - so you can never convert them back to "cash" (comparing to edenred etc) - how do you account for that in the company to make sure you aren't "fraudulently" claiming tax relief?

Vouchers are offset against CT. If you were to ever cash them in, the transaction would be reversed and CT would become payable.

[Lance]

Not in London. Full time nursery is over £1k per month. How much were your nursery costs?

c. £800 a month

[pr1]

c. £800 a month

so 243*9 =2187 (assuming 9 months of maternity leave) was "far more than you needed" to cover almost 4 years of nursery @ £800/mo?