Paying childcare costs through company

[dty]

You can also provide vouchers on an addition-to-salary basis. Ideal for low-paid directors or employees who don't have an actual contract (which is strictly a requirement of salary-sacrifice). Look for the SME guidance booklet on the Kiddivoucher website.

[TheCyclingProgrammer]

You can also provide vouchers on an addition-to-salary basis. Ideal for low-paid directors or employees who don't have an actual contract (which is strictly a requirement of salary-sacrifice). Look for the SME guidance booklet on the Kiddivoucher website.

Yes, for most of us on here, I can't see why you'd need to bother with salary sacrifice.

[electronicfur]

Sorry to bring up an old thread, but I couldn't see this addressed in any of the threads I searched, so seems better to ask it in this one.

When getting your limited company to pay part of the childcare fees to the nursery direct, do you need to just ensure the invoices are in your company's name, or do you need to get the nursery to issue an invoice for only the £243 per month that your company is paying?

It will be easy just to get my nursery to change the name on the invoices, but might be more hassle to convince them to generate two invoices, one for the £243 the company pays, and the remainder for the bit I pay personally.

Cheers,
EF

[LondonManc]

Sorry to bring up an old thread, but I couldn't see this addressed in any of the threads I searched, so seems better to ask it in this one.

When getting your limited company to pay part of the childcare fees to the nursery direct, do you need to just ensure the invoices are in your company's name, or do you need to get the nursery to issue an invoice for only the £243 per month that your company is paying?

It will be easy just to get my nursery to change the name on the invoices, but might be more hassle to convince them to generate two invoices, one for the £243 the company pays, and the remainder for the bit I pay personally.

Cheers,
EF

In before the others with....

Have you asked your accountant?

Better than trusting us bunch of lunatics

[electronicfur]

In before the others with....

Have you asked your accountant?

Better than trusting us bunch of lunatics

So you propose we just delete the Accounting/Legal forum because we can ask our accountants and lawyers everything?

I'm asking to see what others have been advised, so that when my accountant gets back to me, I will be able to see how his advice compares to what others are doing. And as my kids nursery invoice need paying imminently, I'd like to be clued up enough to ask him the right questions, if needed, to sort things out as soon as possible.

[northernladuk]

So you propose we just delete the Accounting/Legal forum because we can ask our accountants and lawyers everything?

I'm asking to see what others have been advised, so that when my accountant gets back to me, I will be able to see how his advice compares to what others are doing. And as my kids nursery invoice need paying imminently, I'd like to be clued up enough to ask him the right questions, if needed, to sort things out as soon as possible.

To be fair I read a number of guides including the SJD and the Nixon Williams and every they said you should discuss with your accountant. They do also say that you pay from the company account directly to the provider but anything above and beyond your allowance will incur a BiK so you put it on your P11D.

[TheCyclingProgrammer]

I wonder if YourCo could pay the bill in full and then you repay YourCo the excess.

You'd still technically need to report it on your P11D but the amount you repaid would go in the amount made good column and there should be no BIK.

Interesting that this thread has been bumped as I've been looking into this again lately for both my older daughter who is attending summer camp (OFSTED registered) and planning for my youngest for when she starts nursery.

I've decided, after speaking with my accountant, to self administer my own childcare voucher scheme. There's a bit of paperwork but it's mostly record keeping. I can produce my own vouchers which are presented to the childcare provider as payment (to keep things simple I will simply get a signed receipt acknowledging the payment) and then I can just transfer the money from the business bank account. Also, because I don't have to pay for the vouchers up front from a third party provider I can revoke any I do not need and of course no admin fees.

I'm also considering putting together a simple web based system for tracking this (you need to record parent, child and provider details, as well as each voucher) but will just use a spreadsheet to start with.

[psychocandy]

I had different amounts each month. Sometimes over sometimes under. We had both childminder and nursery school to pay. Accountant told me its ok as long as the yearly total is under.

Mrs had childcare voucher thing in work with her too.

So what I did was keep a spreadsheet and made sure I didnt go over. School only took cheque (company) but childminder didnt care. Think last month or two paid childminder using the vouchers - she wasnt bothered either way.

Bit of a potch admitedly - changed mrs childcare vouchers monthly buy a few times. After all, you can't get refunds on this dont want to end up with hundreds stuck in there you wont spend.

[macray76]

Self-admin scheme "in addition to salary" accounting treatment

Sorry for bringing up an old thread but I have a similar situation to psychocandy above where the amount payable will vary from month to month. Some months the cost will exceed the £243 limit.

Thing is (as I want to set up a self-administered voucher scheme which is "in addition to salary") should I not be recording a balance sheet liability each month in the company's books for £243 less that month's childcare cost so that in subsequent months where the cost exceeds £243 my company can pay the full amount (subject there being enough balance in this liability account)?

e.g. month 1 childcare costs are £100, so I record £143 as a liability for childcare vouchers.
In month 2 childcare costs are £343 so the liability balance is reduced by £100 to just £43.

Or have I just answered my own question which is setup my own balance sheet liability account to record this?

Thanks in advance.

[Lurker101]

Mine often comes in over the monthly allowance as I have to pay a whole term up front. I just make sure it balances out over the year.