Reply to: Childcare costs - personal or company account

[northernladuk]

I can understand lazy people not bothering searching but people not bothering reading information when the search is done for them is just ridiculous.

[Alan @ BroomeAffinity]

No!

She charges 5hr if I pay via my personal account. Or £6 an hour if I pay via vouchers....

That's 20%. I'm talking about a difference of over £1000 a year!

Btw, I pay from my personal account and claim £243 a month as an expense, would it be fine? Can I claim it as an expense at all?

That's NOT what you sad in the original post.

You can claim £243 in childcare costs from the company if the payment is made direct to the childcare provider from the company. The childcare provider should provide and invoice or receipt to the company. You can't claim it on expenses.

So, Yes!
Pay it through company its costs £4.80 ph, pay it through the company it costs you £5.00 ph.

[d000hg]

6 per hour ...but she minds 3 other children!

Yes presumably she is only charging one person £6/hr at a time. Or do you mean she works 80 hours a week?

[bluedrop]

Pay it through the company, the company gets tax relief making the net cost £4.80. Pay it cash it costs you £5.00. So for 20 hours a week, you are talking about a saving of £4.00 per week. Hardly worth worrying about.

No!

She charges 5hr if I pay via my personal account. Or £6 an hour if I pay via vouchers....

That's 20%. I'm talking about a difference of over £1000 a year!

Btw, I pay from my personal account and claim £243 a month as an expense, would it be fine? Can I claim it as an expense at all?

[Alan @ BroomeAffinity]

Pay it through the company, the company gets tax relief making the net cost £4.80. Pay it cash it costs you £5.00. So for 20 hours a week, you are talking about a saving of £4.00 per week. Hardly worth worrying about.

[bluedrop]

It is allowable to do a bit of your own research you know. I mean, it is only your kids and your money that is involved here.

I just posted a link with 89 other threads. Have you even had a look?

You can't stand being ignored...can you?

I looked up on google before posting here. I understand what it's like for employees...I am a bit confused about how it works or people running businesses....

Now that I gave you attention, can you please allow others to help? Thank you.

[northernladuk]

My childcare invoice is about £600 a month. Can I pay this fully from my business account?

What is pre and post Apr 2011 thing about?

It is allowable to do a bit of your own research you know. I mean, it is only your kids and your money that is involved here.

I just posted a link with 89 other threads. Have you even had a look?

[SimonMac]

Eh? Why does she charge more for vouchers?

I think she charges less for cash

[bluedrop]

If it is within the limits, then you can without any BIK

My childcare invoice is about £600 a month. Can I pay this fully from my business account?

What is pre and post Apr 2011 thing about?

[northernladuk]

You did try a search first didn't you? 1 of the 89 threads about this already might help.


childcare site:forums.contractoruk.com/accounting-legal/ - Google Search

[Craig@Clarity]

Craig, can I pay the full amount from my company account? Would it mean I'll pay extra tax or something?

If it is within the limits, then you can without any BIK

[bluedrop]

If she's only making £6/hr it's hard to see she actually has big problems with a tax bill.

6 per hour ...but she minds 3 other children!

[bluedrop]

It maybe better for you to financially pay it from your company rather than from taxed income. Have a look at the following link which sets out the criteria HM Revenue & Customs: Childcare

Craig, can I pay the full amount from my company account? Would it mean I'll pay extra tax or something?

[d000hg]

If she's only making £6/hr it's hard to see she actually has big problems with a tax bill.

[kingcook]

Eh? Why does she charge more for vouchers?

See: Paying tradesmen cash in hand morally wrong