Best way to pay child care costs

[jmo21]

I'm looking for some advice on what to with my child care costs, but couldn't find anything via a search.

Currently I am paying £300/month as a benefit from my company to me for my daughters nursery costs (money going directly to the nursery).

Her costs have just went up due to another day per week, and my son is now going to nursery as well.

Total combined costs is now £500/month

Now I know anything over £243month is subject to nic/income tax.

So looking for some advice on how best to manage this.

As far as I can tell, I could:
- pay the whole lot as an expense and pay nic/tax on the difference between 500 and 243.
- reduce my salary accordingly so the tax hit works out he same.
- continue with salary as is, pay £243/month as an expense, and the difference from personal funds.

Which would be the most advantageous from my personal tax position?

Q is in to my accountant as well, just interested in more opinions.

[northernladuk]

Can't you buy them clothes with your companies logo and an advertising slogan, send them to nursery in those and expense it to advertising? Saving on your money and a business entity tick.. Sorted.

[speling bee]

Can't you buy them clothes with your companies logo and an advertising slogan, send them to nursery in those and expense it to advertising? Saving on your money and a business entity tick.. Sorted.

And how is Northern Laddy's Crotchless Emporium weathering the recession?

[jmo21]

Can't you buy them clothes with your companies logo and an advertising slogan, send them to nursery in those and expense it to advertising? Saving on your money and a business entity tick.. Sorted.

At least it wasn't your usual "do a search, how can you run your own company" post.

You were quick off the draw as always though, 5 mins!

[Fandango]

does your other half work? and does she have the option of doing salary sacrifice as well?

you could both do £243 through your company & her employer and the remaining ~£10 paid personally.

[northernladuk]

And how is Northern Laddy's Crotchless Emporium weathering the recession?

Fine, making a mint from C&A advertising...

[northernladuk]

At least it wasn't your usual "do a search, how can you run your own company" post.

You were quick off the draw as always though, 5 mins!

I don't always come out with that. If it is a common question that is asked regularly then yes I do put that along with how to search and often the actual search as I assume people would be too lazy to do it themselves. This seems a bit unique so don't believe searching would help.

[speling bee]

Fine, making a mint from C&A advertising...

At nursery?

[northernladuk]

At nursery?

[IR35 Avoider]

£500 a month for two? Don't tell my wife, she's paying £1250 a month for one. (Five days a week, max hours each day, on the edge of City. Though I've read of a nursery on the Isle of Dogs where it is £1400 for 4 days.)