Originally posted by TheCyclingProgrammer
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Reply to: Childcare Vouchers
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Previously on "Childcare Vouchers"
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Originally posted by l35kee View PostAre you certain? There is no signed contract in place between anyone. This is the content of the letter.
We agree to purchase childcare from you to the value of £xx per week from
4th September 2014. We intend to give the childcare as a benefit to our
employee, Fred Bloggs for use by his son, Tom.
This agreement may be amended or cancelled if Fred Bloggs leaves the
employment of XYZ Consulting Limited.
IMO the wording of your letter would form a contract between YourCo and the provider so would probably be fine, but if you can get invoices in the company name from the provider, even better.
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Originally posted by TheCyclingProgrammer View PostYou really ought to have a signed contract between YourCo and the childcare provider or you're risking a BIK charge (as the liability to settle the childcare bill is with whoever is on the contract and if that's you or your spouse, YourCo paying it would be a BIK due to the pecuniary liability principle).
We agree to purchase childcare from you to the value of £xx per week from
4th September 2014. We intend to give the childcare as a benefit to our
employee, Fred Bloggs for use by his son, Tom.
This agreement may be amended or cancelled if Fred Bloggs leaves the
employment of XYZ Consulting Limited.
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I've read that childcare vouchers will soon be ending anyway to be replaced by some other scheme. I currently do the pay directly through your Ltd company method. I assume this won't be effected by the change to childcare vouchers ie they aren't going to turn around and say you can't pay from your Ltd company any more, you have to use the new scheme?
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Originally posted by l35kee View PostIf you don't need to stockpile vouchers as previously mentioned. Just pay the fees directly from your business bank account. Your accountant should be able to provide you with a template to hand to your childcare provider. It'll essentially say "my payments are being made by my employer for £x per month, and will stop if I leave their employment blah blah".
You don't need to/shouldn't do it the vouchers route.
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Originally posted by TheCyclingProgrammer View PostYou can run your own scheme if the childcare providers are willing.
Even better is if you can arrange the contract directly between YourCo and the provider. This simplified things.
Just beware of the maximums that still apply.
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Originally posted by EinsteinTax View PostThere is nothing stopping you running a childcare voucher scheme internally (within your company) and stockpiling vouchers.
All you really need to do is ensure you don't provide more than £243 per month and it is spent on an approved childcare provider when the "voucher" is redeemed.
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Originally posted by SeanT View PostBut you can't stockpile vouchers for use later if for example you're planning another sprog.
All you really need to do is ensure you don't provide more than £243 per month and it is spent on an approved childcare provider when the "voucher" is redeemed.
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If you don't need to stockpile vouchers as previously mentioned. Just pay the fees directly from your business bank account. Your accountant should be able to provide you with a template to hand to your childcare provider. It'll essentially say "my payments are being made by my employer for £x per month, and will stop if I leave their employment blah blah".
You don't need to/shouldn't do it the vouchers route.
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You could ask your accountant. I’m surprised that’s not been suggested.
Mine told me to write a letter to the nursery, from my co, telling them the company would be paying. That was just for records. After that the nursery bills were paid direct from company bank. Once the (I think) £143 had beeen reaches Mrs.L. used her vouchers to pay, and after that we paid personally. Nursery didn’t care.
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Originally posted by SeanT View PostBut you can't stockpile vouchers for use later if for example you're planning another sprog.
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Cheapest I found and not worth the hassle of running your own scheme for the amount it costs. Dead easy to set up. https://www.applechildcarevouchers.co.uk/
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