Childcare Vouchers - HELP!

[Fandango]

Hope SimonMac doesn't mind me posting on his thread but I'm facing a similar situation and would just appreciate some confirmation that what i'm doing is ok.

I just want to double double check i don't need to do anythign with HMRC (as i've spent about 1.30hr on hold trying to get through to them over the past week on the employer helpline )

As director of my Ltd I pay myself a minimum salary, and any extra i take as dividends

I pay part of my sons nursery fees direct from my Ltd company account to the sum of £243/month and receive an invoice for said amount from nursery.(which from what i understand is the maximum permisssable amount before having to declare it a BIK) and my wife pays the remainder of the balance also as vouchers from her PAYE part time job

My question is, do i need to do anythign with HMRC to register that the Ltd company is operating a voucher scheme?

I have a lady who does my payrol and an accountant and neither seem sure what i need to do about this (which doesn't inspire me with confidence tbh!) ie does it need including on p11d if its under the £243/month? does it affect anythign on the p35?

Thanks in advance

[SimonMac]

Hope SimonMac doesn't mind me posting on his thread but I'm facing a similar situation and would just appreciate some confirmation that what i'm doing is ok.

I just want to double double check i don't need to do anythign with HMRC (as i've spent about 1.30hr on hold trying to get through to them over the past week on the employer helpline )

As director of my Ltd I pay myself a minimum salary, and any extra i take as dividends

I pay part of my sons nursery fees direct from my Ltd company account to the sum of £243/month and receive an invoice for said amount from nursery.(which from what i understand is the maximum permisssable amount before having to declare it a BIK) and my wife pays the remainder of the balance also as vouchers from her PAYE part time job

My question is, do i need to do anythign with HMRC to register that the Ltd company is operating a voucher scheme?

I have a lady who does my payrol and an accountant and neither seem sure what i need to do about this (which doesn't inspire me with confidence tbh!) ie does it need including on p11d if its under the £243/month? does it affect anythign on the p35?

Thanks in advance

I haven't done anything with HMRC, as for the upper limit of £55/pw this is a absolute limit, not a BIK limit so you can't go higher than this. As for the P11D and P35, I got a year to work that one out myself

[Clare@InTouch]

do i need to do anythign with HMRC to register that the Ltd company is operating a voucher scheme?

does it need including on p11d if its under the £243/month?

does it affect anythign on the p35?

No, No and No.

[Fandango]

No, No and No.

thank you very much

[Fandango]

sorry one last question

how does should this be accounted for in the books? Does it just get put under a nominal just like an ordinary company expense (I'm using Sage Instant) or does something funky need to happen with it?

thanks

[Clare@InTouch]

sorry one last question

how does should this be accounted for in the books? Does it just get put under a nominal just like an ordinary company expense (I'm using Sage Instant) or does something funky need to happen with it?

thanks

Just put under a normal expense nominal. Makes sense to add it to the same group as wages, so something like "Other staff costs".

[Peter999]

Vauchers secretary

[QUOTE=Fandango;1544432]Hope SimonMac doesn't mind me posting on his thread but I'm facing a similar situation and would just appreciate some confirmation that what i'm doing is ok.

As director of my Ltd I pay myself a minimum salary, and any extra i take as dividends
I pay part of my sons nursery fees direct from my Ltd company account to the sum of £243/month and receive an invoice for said amount from nursery.(which from what i understand is the maximum permissible amount before having to declare it a BIK) and my wife pays the remainder of the balance also as vouchers from her PAYE part time job""

I have started doing the same for myself as a director. Can I also do it for my secretary?

Pay her minimum wage (£6.08*5 hours per week) £1,580.80 per annum, she also have other source of income.
PAYE tax at 20% relating her Wage - £316.16 and pay £243/month directly to nursery.

Total payments from company 2 x 243/month.

Not if this is fully acceptable and how much saving can achieve by doing this, less divided etc.

I would appreciate any comments.

Cheers

Peter

[Nathan SJD Accountancy]

[QUOTE=Peter999;1584172]

Hope SimonMac doesn't mind me posting on his thread but I'm facing a similar situation and would just appreciate some confirmation that what i'm doing is ok.

As director of my Ltd I pay myself a minimum salary, and any extra i take as dividends
I pay part of my sons nursery fees direct from my Ltd company account to the sum of £243/month and receive an invoice for said amount from nursery.(which from what i understand is the maximum permissible amount before having to declare it a BIK) and my wife pays the remainder of the balance also as vouchers from her PAYE part time job""

I have started doing the same for myself as a director. Can I also do it for my secretary?

Pay her minimum wage (£6.08*5 hours per week) £1,580.80 per annum, she also have other source of income.
PAYE tax at 20% relating her Wage - £316.16 and pay £243/month directly to nursery.

Total payments from company 2 x 243/month.

Not if this is fully acceptable and how much saving can achieve by doing this, less divided etc.

I would appreciate any comments.

Cheers

Peter

Hi Peter,

Yes it's fine to provide the Childcare to your Secretary provided the following conditions are met:

It is for either a child or stepchild of the Secretary who is maintained wholly or partly at the expense of the Secretary, and that the child is resident with the Secretary and is a person of whom the Secretary has parental responsibility.

The care must be qualifying childcare.

The scheme is open to all employees.

Due to the amount of income that your secretary receives though, this would have to be an ‘addition to salary cost’ to your company just as yours appears to be.

Why would you want to do this though? The total cost of the childcare cost exceeds the yearly income that they are receiving from your company. Your company would therefore be paying out more in childcare costs than the salary that they receive.

I am assuming you are connected to the Secretary in some way?

More details on this can be found on the below HMRC link.

http://www.hmrc.gov.uk/thelibrary/employer-qa.pdf

[THEPUMA]

Re documentation, if the company pays the carer directly, you have to be able to show that the contract was between the employer and carer, rather than the employer settling a personal liability of the parent, which would not qualify for the exemption.

There is a template letter from employer to carer which HMRC published. I can't find it online but have a copy if anyone wants me to email it to them. If anyone knows how to upload it somewhere that everyone can see, please feel free.

My email address is joel.harding@hllp.co.uk.