Childcare Vouchers Provider

[r0bly0ns]

Poo, so I'm back to square one......

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?

[PayMatters]

We use Busy Bees ChildCare Vouchers

[kobie]

I pay mine directly from my ltd company bank account - got investiaged last year - they asked some questions about the number of children I have, name, ages, are they mine...felt a bit like a Jeremy Kyle show.

They were able to see where the DD's were going so did not pursue...can't see what extra you get for your 2.5% , 72 quid.

Need to ensure that your childminder is a recognised and registered childcare provider.


Speaking of which I just canned my accountant so if I may I'll ask a question on a similar topic. I plan to pay myself 29K divvies and 8K salary..so once I remove my childcare vouchers that gives me a salary of 5084 with a tax code of 603L which means that I pay zero tax on my salary and 0 employee and employers NI, is this a good idea ?

cheers Kobie.

[Little'Old Me]

Speaking of which I just canned my accountant so if I may I'll ask a question on a similar topic. I plan to pay myself 29K divvies and 8K salary..so once I remove my childcare vouchers that gives me a salary of 5084 with a tax code of 603L which means that I pay zero tax on my salary and 0 employee and employers NI, is this a good idea ?

cheers Kobie.

You could pay yourself up to £5,435 (2008/09) etc, and get credits for your old age pension without paying tax or NI

[MickeyP]

Hi all,

Is it possible for a husband/wife run Ltd company (both employees) to claim 55 quid a week (or 243 per month) each for the same child?

Cheers

Mickey

[Little'Old Me]

Hi all,

Is it possible for a husband/wife run Ltd company (both employees) to claim 55 quid a week (or 243 per month) each for the same child?

Cheers

Mickey

Yes, provided you follow the rules. Which are for each employee.

By the way - don't forget:

1. The "vouchers" have to be available to all employees on the same basis
2. You cannot make deductions against an employees salary without their permission - its best to get it in writing.

At a company I used to work for, employees had to give me an invoice from their registered childcare provider, with a note confirming any additional amount could be deducted from their salary. The director and his wife (also an employee) had 3 children so got most of their childcare paid.

I would then issue the voucher myself (from my own template), attach it to the invoice and pay the childcare provider directly the full amount and any difference was deducted from the monthly salary.

Simply and easy to work...... at no additional cost to the company

Most large companies only have a small proportion of their employees that use childcare, so must will never use it, and once they reach school age, the amount required drops.

[ANSOF]

There is a good article about childcare vouchers on this site.....

http://www.danbro.co.uk/press-releas...-childcare.htm

[DiscoStu]

There is a good article about childcare vouchers on this site.....

http://www.danbro.co.uk/press-releas...-childcare.htm

Your Danbro advertisments become more and more blatant

[Robwg]

You don't need to (and in fact shouldn't) go through an admin firm - these are for huge companies who need to manage the process - not one man bands.

For a one man band - just document the voucher agrement between the company and employee (i.e. you) and setup a standing order to your Child care provider - providing they have a legitimate ID of course. No money should touch your bank account at any stage.

The savings are just the same as any other expense - i.e. it comes out of your company account before any tax has been paid.

[PhilAtBFCA]

Child Care Vouchers

I am still of the mind that for most professional Contractors and freelancers running their own company the easiest way is to steer clear of any salary sacrifice and just arrange yourself to have the most tax efficient salary.

For child care vouchers the company should be contracted with the provider directly, and pay and within the limits that works fine. See here for the ful details.

Phil