Child Care Vouchers for Ltd Co Contractor

[TheCyclingProgrammer]

Is there any way to use any of this stuff if it's family providing childcare? I suspect not, but we do have a semi-formal arrangement and we pay a daily fee.

It needs to be registered and approved childcare.

Childcare Vouchers-Eligibility to join a Childcare Voucher Scheme

[vwdan]

Is there any way to use any of this stuff if it's family providing childcare? I suspect not, but we do have a semi-formal arrangement and we pay a daily fee.

[TheCyclingProgrammer]

you can pay the childcare provider directly from your ltd bankaccount (provided you do not go over the allowance limit)

But you must make sure there is an agreement in place between YourCo and the childcare provider so that the childcare costs are the liability of YourCo. If there isn't, then YourCo is effectively paying your childcare bills on your behalf (pecuniary liability principle) and this is a taxable BIK.

This can be something as simple as a letter from YourCo to the provider, ideally with some kind of written acknowledgement and invoices in the company name.

[tarbera]

rules most on here out

This new scheme is a lot less faff:
https://childcare-support.tax.service.gov.uk/

To qualify for either scheme, parents must be working and each earning at least £120 a week (on average) and not more than £100,000 each a year

[t0bytoo]

This new scheme is a lot less faff:
https://childcare-support.tax.service.gov.uk/

[SimonMac]

If you want to go through the "proper" route and pay a premium for someone else to sort out the hassle I used these people:

https://www.kiddivouchers.com/

[Lance]

So can your Ltd give you childcare vouchers without incurring tax liability?

Who is the voucher provider people use?

Thanks

Yes.
Don’t use vouchers just pay the relevant childminder the fees and get supporting documentation.

Why didn’t you search you tool (in general so I have to be rude)? It’s been done to death.

[Eirikur]

you can pay the childcare provider directly from your ltd bankaccount (provided you do not go over the allowance limit)

[northernladuk]

Did you attempt to do even the slightest amount of research first?

[barrydidit]

there is always the outside chance of a sensible answer...

Best advice would be to keep it in your pants. You wouldn't believe how much you save that way.

HTH

[TheCyclingProgrammer]

Just create your own vouchers. It's not complicated. Keep a record of each voucher you issue and it's value, then produce a voucher that states what the holder is entitled to and give it to the childcare provider. Ask them to sign it to show that they have accepted it as payment in kind (this transfer the liability from you personally to the voucher producer - YourCo) then do a bank transfer from YourCo to provider to redeem it.

Even easier is to get the childcare provider to contract directly with YourCo. This can be as simple as a letter on behalf of YourCo stating that it wishes to purchase childcare for employee X (you) up to the value of £y per month and that could they please address invoices to YourCo, YourCo address.

As a formality, whichever route you choose, at the beginning of each tax year you should create a "Basic Earnings Assessment" which details your relevant earnings (which will just be your salary) and the maximum amount you are allowed per month. It should be £243/month as a basic rate taxpayer (dividends don't count as relevant earnings).

[CoolCat]

there is always the outside chance of a sensible answer...

[SueEllen]

Did you really want to ask in General?

[CoolCat]

So can your Ltd give you childcare vouchers without incurring tax liability?

Who is the voucher provider people use?

Thanks