Using Childcare vouchers issued from your ltd

[Clare@InTouch]

So final question(maybe a dumb one Claire)

You mentioned that we can pay directly from the LTD company. Up to what amount. £55 per week, or more?

Up to £55 a week would be fine - you can pay more, but the excess would be a benefit in kind. A lot of people have two DDs set up to pay their nursery, one from their Limited and one from their Private account.

Also keep in mind the amount isn't just for younger children, there are after/pre school clubs for older childran that would meet the criteria too.

[MarillionFan]

So final question(maybe a dumb one Claire)

You mentioned that we can pay directly from the LTD company. Up to what amount. £55 per week, or more?

[prozak]

No, it won't touch your tax return. You may want to consider how it effects any tax credits you receive though.

Thanks.

[Clare@InTouch]

So my next question.......

Since I would be on low salary+dividends

Is any part of the childcare counted as salary when doing self-assessment?

No, it won't touch your tax return. You may want to consider how it effects any tax credits you receive though.

[prozak]

So my next question.......

Since I would be on low salary+dividends

Is any part of the childcare counted as salary when doing self-assessment?

[prozak]

my bad...found this...

"If your employer provides you with childcare vouchers you will
not have to pay Income Tax or NICs on the first £55 per week, or
£243 per month. However, if your vouchers are worth more than
this, you will have to pay Income Tax and NICs on the remainder."

[prozak]

http://www.hmrc.gov.uk/childcare/smechildcareguide.pdf

Just read this. Very interesting.

If I pay someone 5715/year - so no NICs. Can I then pay the £55 per week and there is still no NICS or PAYE?

And this extra £55 is fully CT deductable.....

However this pushes the Income above the personal allowance, so is PAYE due?

[prozak]

You can simply pay the nursery direct from your limited company bank account.

Keep full records obviously, just to back up the expense in case it should ever be investigated.

Can you elaborate on the ability to do this?

I have had childcare vouchers when a permie but never thought of this as contractor. especially since my wife and my employer is our ltd company.

[ChimpMaster]

Super, thanks Clare.

[Clare@InTouch]

You can simply pay the nursery direct from your limited company bank account.

Keep full records obviously, just to back up the expense in case it should ever be investigated.

[ChimpMaster]

Have any of you issued Childcare vouchers from your company direct to a nursery?

I'm wondering if it's a straightforward process to follow.