Childcare Vouchers & Providers

[vwdan]

Hi All,

With the impending release of VWDan v2.00 (Alpha), i'm having a look into childcare vouchers. I'll have a proper chat with the accountants prior to doing anything, but firstly I just wondered what people are doing with regards to childcare vouchers. And secondly, if anybody is using any providers that they can recommend. My Mrs is having a few months off, but I'm under the impression that (if I use a provider) I can accrue the months where she's working until we start using a provider.

Thanks!

[Alan @ BroomeAffinity]

You don't need childcare vouchers. Just get the childcare provider to invoice your company for £55 per week and you pay the balance personally. Oh, and congratulations.

[vwdan]

You don't need childcare vouchers. Just get the childcare provider to invoice your company for £55 per week and you pay the balance personally. Oh, and congratulations.

Cheers Alan! I was thinking more for the period of maternity leave (Possibly up to 6 months). I understand that I could pay them into a scheme for us to then use at our leisure afterwards?

[minstrel]

Cheers Alan! I was thinking more for the period of maternity leave (Possibly up to 6 months). I understand that I could pay them into a scheme for us to then use at our leisure afterwards?

Your Ltd can set up it's own childcare voucher scheme.

Essentially, you can just accrue the £243 per month in the accounts and then pay the childcare provider the amount of the accrued "vouchers" when you need to use them.

[vwdan]

Your Ltd can set up it's own childcare voucher scheme.

Essentially, you can just accrue the £243 per month in the accounts and then pay the childcare provider the amount of the accrued "vouchers" when you need to use them.

Right - cool! Do you know if I need to literally account/accrue them or if I can simply backdate when the time comes?

[minstrel]

Right - cool! Do you know if I need to literally account/accrue them or if I can simply backdate when the time comes?

I normally put an accounting entry through each month for the £243 so it's clear. If you go over your company year end before you redeem all the vouchers it's important you recognise the vouchers as an expense in the P&L (reducing CT) and also recognise the Childcare vouchers as a creditor in the balance sheet.

[Lance]

I normally put an accounting entry through each month for the £243 so it's clear. If you go over your company year end before you redeem all the vouchers it's important you recognise the vouchers as an expense in the P&L (reducing CT) and also recognise the Childcare vouchers as a creditor in the balance sheet.

Not forgetting that if you go into higher tax rate then the amount you can claim tax free is half that value.

[minstrel]

Not forgetting that if you go into higher tax rate then the amount you can claim tax free is half that value.

Yes - good point. I stay just under the limit to get childcare vouchers and the £1,000 personal savings allowance, but if you go over the higher rate threshold you lose them both.

[minstrel]

Child Benefit

Child benefit is also a good one to claim too.

This is around £80 per month as long as both parents earn below £50k each.

More details here:

https://www.gov.uk/child-benefit/overview

[pr1]

Your Ltd can set up it's own childcare voucher scheme.

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