Paying childcare via company

[Clare@InTouch]

news just in from my accountant

"This is the case for new schemes. The trouble is it works through a salary sacrifice and means that it cannot apply if you then would go below the minimum wage. I will look into this further."

We are bringing in salary sacrifice arrangements for our scheme but have a
small number of employees on low incomes. If they pay for their childcare
through salary sacrifice it will reduce the level of their earnings below the
national minimum wage. Is that okay?

No. Legislation relating to the national minimum wage prohibits the level of earnings
being reduced to below the minimum amount in these circumstances. You can either
choose to exclude these employees from your scheme or continue to provide
childcare support for them without requiring a salary sacrifice arrangement.

[Notascooby]

news just in from my accountant

"This is the case for new schemes. The trouble is it works through a salary sacrifice and means that it cannot apply if you then would go below the minimum wage. I will look into this further."

That I know is bollox. It goes through as a company expense. (EDIT - see Claire's post above - for the real details)

Claire thank you - just emailed my accountant at another well known firm to ask why I was giving a bum steer on this and to see if I can over-pay for value I've not take (been paying £124 rather than £243) - although not sure if spanning accountancy years will mean I limited to do this from the start of my year which is May.

[Notascooby]

Update

SJD are still saying that dividends are included...

So I'll stick with this opinion although I do believe Claire.

[Clare@InTouch]

Fair enough

My last word on the subject then Childishly Simple

[Notascooby]

Fair enough

My last word on the subject then Childishly Simple

That's super and just goes to show how very fair it is!

I've sent this on, all a bit strange that somethinng that should be so black and white seems to garner differing opinions.

[MarillionFan]

That's super and just goes to show how very fair it is!

I've sent this on, all a bit strange that somethinng that should be so black and white seems to garner differing opinions.

My accountant has come back to me after reviewing this and the other links in the thread and have agreed this is correct. They've instructed me to make the payments from the LTD company and provide the childcare invoices, they will do the rest.