Childcare costs - personal or company account

[bluedrop]

Hi all,
I somehow can't get my head around to compare...

My child minder charges me £5 an hour if I pay her cash or £6 an hour if I pay her child care vouchers (or via my company's business account)

Which of the two is the best for me financially?

I take min sal+ dividends. Total less than £42k gross

And I use 20hrs of child care a week in term time and full time during school holidays....

[mudskipper]

Hi all,
I somehow can't get my head around to compare...

My child minder charges me £5 an hour if I pay her cash or £6 an hour if I pay her child care vouchers (or via my company's business account)

Which of the two is the best for me financially?

I take min sal+ dividends. Total less than £42k gross

And I use 20hrs of child care a week in term time and full time during school holidays....

Eh? Why does she charge more for vouchers?

[Craig@Clarity]

It maybe better for you to financially pay it from your company rather than from taxed income. Have a look at the following link which sets out the criteria HM Revenue & Customs: Childcare

[scope]

Eh? Why does she charge more for vouchers?

Somebody has to cover the tax she then has to pay. ;-)

[kingcook]

Eh? Why does she charge more for vouchers?

See: Paying tradesmen cash in hand morally wrong

[d000hg]

If she's only making £6/hr it's hard to see she actually has big problems with a tax bill.

[bluedrop]

It maybe better for you to financially pay it from your company rather than from taxed income. Have a look at the following link which sets out the criteria HM Revenue & Customs: Childcare

Craig, can I pay the full amount from my company account? Would it mean I'll pay extra tax or something?

[bluedrop]

If she's only making £6/hr it's hard to see she actually has big problems with a tax bill.

6 per hour ...but she minds 3 other children!

[Craig@Clarity]

Craig, can I pay the full amount from my company account? Would it mean I'll pay extra tax or something?

If it is within the limits, then you can without any BIK

[northernladuk]

You did try a search first didn't you? 1 of the 89 threads about this already might help.


childcare site:forums.contractoruk.com/accounting-legal/ - Google Search