should P60 figures reflect salary sacrifice For childcare

[Lance]

I am sure. Your accountant is wrong. (Which breaks "Have you asked your accountant?")

Childcare vouchers for company directors | AccountingWEB
"The dividends aren't relevant to that assessment."

sigh...... he's fired as soon as I get the company return completed (5 months now).

[chopper]

you sure?
When my divis + salary exceeded £43k my accountant said I need to reduce the childcare payments to the lower rate to avoid further BIK charges.

I am sure. Your accountant is wrong. (Which breaks "Have you asked your accountant?")

Childcare vouchers for company directors | AccountingWEB
"The dividends aren't relevant to that assessment."

[Lance]

If you pay yourself £11k a year, and your company also gives £2916 a year to your childcare provider, then £11k is the P60 figure, and the P60 figure goes in your SATR.

The £2916 is a non-taxable benefit, so doesn't even go on a P11d.

If YourCo paid the childcare provider more than £2916 (or £1488 if your salary is more than £43k) then the excess becomes a taxable benefit in kind. Dividend earnings are not relevant for the purpose of this calculation.

you sure?
When my divis + salary exceeded £43k my accountant said I need to reduce the childcare payments to the lower rate to avoid further BIK charges.

[chopper]

So does the childcare cost need to go in the tax return as part of total income?

If you pay yourself £11k a year, and your company also gives £2916 a year to your childcare provider, then £11k is the P60 figure, and the P60 figure goes in your SATR.

The £2916 is a non-taxable benefit, so doesn't even go on a P11d.

If YourCo paid the childcare provider more than £2916 (or £1488 if your salary is more than £43k) then the excess becomes a taxable benefit in kind. Dividend earnings are not relevant for the purpose of this calculation.

[Louisa@AardvarkAccounting]

No. It should just be the P60 figure (which is the salary less the salary sacrifice).

Otherwise if you add in the gross figure before the salary sacrifice, it will look like you've underpaid tax on your income and you'll then have incorrect tax due on your SATR.

So make sure you only pop on there the salary that you've received [emoji3]

[css_jay99]

Non-taxable benefits are not included on the P60.

As you have sacrificed your salary, it will be the actual salary that you received (so the value after the childcare vouchers have been deducted), that should be shown on the P60.

Thanks

So does the childcare cost need to go in the tax return as part of total income?

[Louisa@AardvarkAccounting]

Non-taxable benefits are not included on the P60.

As you have sacrificed your salary, it will be the actual salary that you received (so the value after the childcare vouchers have been deducted), that should be shown on the P60.

[css_jay99]

Hi,

if childcare cost is paid directly to childcare provider, should the total be included in the P60?

Reporting it as expense is ok SAGE accounts but I simply cant see how it can make its way into RTI and then the P60 ....

Thanks