Childcare Vouchers Provider

[basshead]

£243

Hence the ~

Including the admin fee, cost to myCo is currently £250.13 with Kiddivouchers, £7 well spent IMO.

[Chugnut]

Hence the ~

Including the admin fee, cost to myCo is currently £250.13 with Kiddivouchers, £7 well spent IMO.

CUK wouldn't be CUK without the hair-splitting.

HTH

[r0bly0ns]

As I understand it, you just need a contract between your company and the childcare provider stating the company will purchase childcare on behalf of its employee (you). The provider then invoices your company directly each month. Set up standing order from company account. Bingo, saves paying a third party.

We are looking into doing exactly that, but are having difficulty finding any information about what we have to provide to the employee, if anything, as evidence of the 'voucher'

That's what I was expecting - I asked my accountant about it this week, and he's getting back to me about it......

I am in the same boat TheFaQQer, did your accountant ever get back to you?


I believe that it's just a case of we reduce the employees salary (if we decide to), then we pay the childcare provider direct.

However, I am unable to find any information as to:
a) What information we have to provide to the childcare provider.
b) What information we have to obtain from the childcare provider.
c) What information we have to give to the employees.
d) What information we have to give to HMRC to let them know we are providing vouchers to employees.


Anyone have any further info?

[moorfield]

kiddivouchers offer very good value at 2.5%, job done, no more hassle.

[Danbro]

Danbro Accounting Ltd

Looking for a recommendation for a provider - has anyone's Ltd Co set up a scheme and used a provider they are happy with? If so, who is the provider?

HI,

The best way to claim childcare vouchers via your own Limited Company is to pay £55 per week from your company account directly to your provider and the balance personally, the £55 PW can be claimed as an expense against corporation tax saving 21% and potentially another 25% in reduced dividends.

If you paid the whole cost from your childcare provider the balance over £55 would be a benefit in kind incurring tax personally and NI in your company making this option less attractive.

This will cost you nothing in admin fees.

Thanks

Neil Ormesher

[r0bly0ns]

HI,

The best way to claim childcare vouchers via your own Limited Company is to pay £55 per week from your company account directly to your provider and the balance personally, the £55 PW can be claimed as an expense against corporation tax saving 21% and potentially another 25% in reduced dividends.

If you paid the whole cost from your childcare provider the balance over £55 would be a benefit in kind incurring tax personally and NI in your company making this option less attractive.

This will cost you nothing in admin fees.

Thanks

Neil Ormesher

Thanks Neil, but what information do we need to record? Is it enough to just record it as a company purchase? Do we need to provide anything to the Employees (assuming we don't go over the BIK limit)?

[Danbro]

Danbro

Thanks Neil, but what information do we need to record? Is it enough to just record it as a company purchase? Do we need to provide anything to the Employees (assuming we don't go over the BIK limit)?

Hi,

The £55 will be coming out of your company bank account so your Accountant will spot it easily that way. You could ask the childcare provider for a receipt maybe annually, the Inland Revenue wouldn't challenge the charge if your bank statement stated were the money was going, i would suggest a back up of a receipt from the childcare provider though

Thanks

Neil

[r0bly0ns]

Hi,

The £55 will be coming out of your company bank account so your Accountant will spot it easily that way. You could ask the childcare provider for a receipt maybe annually, the Inland Revenue wouldn't challenge the charge if your bank statement stated were the money was going, i would suggest a back up of a receipt from the childcare provider though

Thanks

Neil

So we don't actually *have* to provide any evidence to the employee for their own tax returns (apart from the P11D iff there is a benefit in kind)?

We just treat it as any other normal company purchase?


Thanks for the info Niel

[r0bly0ns]

kiddivouchers offer very good value at 2.5%, job done, no more hassle.

Sorry moorfield, I'm not ignoring you

We already employ an office manager who does a lot of billing for us, so I don't really want to pay kiddivouchers 2.5% if our current employee can handle it for us.


And thanks to the info from Neil at Danbro I think they can.

Cheers all.

[Danbro]

Danbro

Sorry moorfield, I'm not ignoring you

We already employ an office manager who does a lot of billing for us, so I don't really want to pay kiddivouchers 2.5% if our current employee can handle it for us.


And thanks to the info from Neil at Danbro I think they can.

Cheers all.

HI,

Actually, my answer was tailored to owner managed business, if you are claiming childcare vouchers for employees other than directors and shareholders who don't have a controlling interest I believe you will have to go down the voucher route, my suggestion was for basic contractors were the director / shareholder wants to claim childcare costs not individual employees.

Sorry for any confusion

Thanks

Neil