Reply to: Best way to pay child care costs

[prozak]

Thats right - its per employment.

Cha'Ching !!

[Notascooby]

Sorry Notascooby, I missed the context. With your two enterprises you can take childcare vouchers from each.

I didn't include it first time....so nothing missed!
thanks

[Greg@CapitalCity]

What surprises me is...

I assumed that £243/month was a limit as an individual, not a limit per employment taht can be taken multiple times.

Thats right - its per employment.

[Greg@CapitalCity]

Greg - the context was around if I started a company that I used as a vehicle to manage a portfolio of buy-2-let such as notascoobyletting ltd. I could invest from notascoobyconsulting ltd into this new company in order to utilise the war chest in a long-term investment.

Sorry Notascooby, I missed the context. With your two enterprises you can take childcare vouchers from each.

[Notascooby]

A well known UK tax advisor runs 3 separate companies for his different enterprises - and although he doesn't, the fact remains he could claim childcare vouchers from all three. Having said that setting up a three companies specifically for getting tax free childcare vouchers sounds shambolic.

Greg - the context was around if I started a company that I used as a vehicle to manage a portfolio of buy-2-let such as notascoobyletting ltd. I could invest from notascoobyconsulting ltd into this new company in order to utilise the war chest in a long-term investment.

Then if I were a Director of both companies, I would in effect be entitled to child care and other entitlements from both companies.

I'd certainly not go to the trouble of creating multiple companies for the sake of a saving that would probably be less than the accounting cost of running it.

[speling bee]

Employees of umbrellas are entitled to childcare vouchers, as are directors of PSC's. The practicalities however might paint a difference picture.

I am an employee of a PSC as well as a director. What surprises me is...

I assumed that £243/month was a limit as an individual, not a limit per employment taht can be taken multiple times.

Because if the latter, it may well be worth looking to pay you missus (even if she works) a sum in childcare vouchers, for bookkeeping, website maintenance, business case development and updating, mail / emial handling, contract serach and management.

[Greg@CapitalCity]

But couldn't you direct some income to yourself via a brolly? And take it as vouchers?

Employees of umbrellas are entitled to childcare vouchers, as are directors of PSC's. The practicalities however might paint a difference picture.

[speling bee]

A well known UK tax advisor runs 3 separate companies for his different enterprises - and although he doesn't, the fact remains he could claim childcare vouchers from all three. Having said that setting up a three companies specifically for getting tax free childcare vouchers sounds shambolic.

But couldn't you direct some income to yourself via a brolly? And take it as vouchers?

[Greg@CapitalCity]

If you formed 3 companies and took a salary from each (all very low etc) would you be able to claim the £243 from all of them?

A well known UK tax advisor runs 3 separate companies for his different enterprises - and although he doesn't, the fact remains he could claim childcare vouchers from all three. Having said that setting up a three companies specifically for getting tax free childcare vouchers sounds shambolic.

[swamp]

It's not £243, it's £124 if you are a higher rate taxpayer.

But you can accumulate childcare vouchers within one tax year, so during summer holidays you can save them up for term time.

[northernladuk]

I was thinking something similar yesterday whilst of for a run...

If you formed 3 companies and took a salary from each (all very low etc) would you be able to claim the £243 from all of them?

Obviously there would be accounting overheads etc etc and need for income but would it be alllowed?

You mean creating an artificial situation to enhance your tax position?

[Jessica@WhiteFieldTax]

- continue with salary as is, pay £243/month as an expense, and the difference from personal funds.

Is probably easiest and most effective from a NI perspective, as it avoids P11D issues

[Notascooby]

I was thinking something similar yesterday whilst of for a run...

If you formed 3 companies and took a salary from each (all very low etc) would you be able to claim the £243 from all of them?

Obviously there would be accounting overheads etc etc and need for income but would it be alllowed?

[jmo21]

£500 a month for two? Don't tell my wife, she's paying £1250 a month for one. (Five days a week, max hours each day, on the edge of City. Though I've read of a nursery on the Isle of Dogs where it is £1400 for 4 days.)

3 days for my daughter and 1 for my son.

Includes a 10% 2nd child discount and government subsidised 15 hours per week for my daughter as she turns 3 soon

[IR35 Avoider]

£500 a month for two? Don't tell my wife, she's paying £1250 a month for one. (Five days a week, max hours each day, on the edge of City. Though I've read of a nursery on the Isle of Dogs where it is £1400 for 4 days.)