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Childcare vouchers above the tax-free limit

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    Childcare vouchers above the tax-free limit

    We are not using any childcare voucher provider and pay directly from the ltd's bank account to an approved nursery. Was fine before, as the payments per month/per employee were well below £243.

    Now it looks like they will rise above that limit, so the excess will become taxable, the question is: I know when a Childcare provider is used parents can save up vouchers for future use. Is it possible to do the same thing in the direct scheme ? Can I simply print some "vouchers" for e.g. June, May, April when no vouchers were issued at all and "give" them to employees to use on top of the current month's allowance ?

    What do you do with the excess ?

    #2
    Originally posted by Lumiere View Post
    We are not using any childcare voucher provider and pay directly from the ltd's bank account to an approved nursery. Was fine before, as the payments per month/per employee were well below £243.

    Now it looks like they will rise above that limit, so the excess will become taxable, the question is: I know when a Childcare provider is used parents can save up vouchers for future use. Is it possible to do the same thing in the direct scheme ? Can I simply print some "vouchers" for e.g. June, May, April when no vouchers were issued at all and "give" them to employees to use on top of the current month's allowance ?

    What do you do with the excess ?

    I've been using KiddiVouchers and used the limit over the last year to build up an excess in my account - but our playgroup spending is not huge and offspring are funded from 3 anyway. I'll have some left over next year and beyond playgroups nurseries etc. I'm not sure what else it could be used for after that, maybe the odd after school club, so I'm just going pay out the left overs to the local playgroup by way of a donation.

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