Reply to: Fees charges by Childcare Voucher scheme providers

[ASB]

She also said her HR dept was also mentioning something about salary sacrifice which i really did not understand ...

Salary sacrifice means it will come out of her gross pay without deductions. So there is a tax and Ni saving (and an NI saving for the company too). Though it does depend on the exact circumstances.

A write up here:-

Childcare Vouchers - A Working Parents guide to Salary Sacrifice

[LisaContractorUmbrella]

Thanks Lisa,

That answers my 2nd question

Glad to help

[css_jay99]

Thanks Lisa,

That answers my 2nd question

[LisaContractorUmbrella]

Advice pls

thanks

I can't vouch for the information provided here http://www.daccountant.co.uk/Childca...%20company.pdf but it might answer your questions

[css_jay99]

1) If I make my Mrs and employee/secretary of my ltd company can I also give her £243 child voucher as well as well considering she is getting that at work ?. Our Nursery fees is about £1100 monthly. This would mean giving the nursery £729
2) What should be the content of agreement with the nursery?

Advice pls

thanks

[css_jay99]

My 10month old is starting nursery tomorrow and in my true fashion of timing just started looking at childcare vouchers ...


The mrs will be getting £243 from work. She also said her HR dept was also mentioning something about salary sacrifice which i really did not understand ...

Anyhow, after reading via this thread I have two questions.

1) If I make my Mrs and employee/secretary of my ltd company can I also give her £243 child voucher as well as well considering she is getting that at work ?. Our Nursery fees is about £1100 monthly. This would mean giving the nursery £729
2) What should be the content of agreement with the nursery?


cheers

[JRCT]

Thank you very much, eek and Graig. £243 it is. I am going to write an agreement for my childminder and I to sign. Is there any thing else I or my accountant need to do?

It should be noted that any child-minder needs to be approved/ registered. You can't just give £243 to Gladys next door.

[7of9]

Set up the payment of £243 to come from the company each month and give a copy of the agreement to your accountant for their records.

Aside from that it sounds like you're set!

Craig

Thanks Craig. I wish my account manager can response this fast.

[Craig at Nixon Williams]

Thank you very much, eek and Graig. £243 it is. I am going to write an agreement for my childminder and I to sign. Is there any thing else I or my accountant need to do?

Set up the payment of £243 to come from the company each month and give a copy of the agreement to your accountant for their records.

Aside from that it sounds like you're set!

Craig

[7of9]

Thank you very much, eek and Graig. £243 it is. I am going to write an agreement for my childminder and I to sign. Is there any thing else I or my accountant need to do?

[Craig at Nixon Williams]

Hi Graig,

My account manager said mine is 55 pounds per week so roughly 238 pounds per month. I take 7680£ salary, is that the reason why my limit is slightly lower.

Thanks!

The legislation (see http://www.hmrc.gov.uk/leaflets/ir115.pdf) says £55 per week or £243 per month. The £55 per week x 52 weeks / 12 months is £238.33 so I assume that is where this has come from.

If you are claiming the childcare monthly then you can have £243 per month.

The above assumes that you are a basic rate tax payer based on your salary, if you have a higher salary and entered the childcare scheme after 06/04/2011 then the amount will be lower.

Craig

[eek]

Hi Graig,

My account manager said mine is 55 pounds per week so roughly 238 pounds per month. I take 7680£ salary, is that the reason why my limit is slightly lower.

Thanks!

Um because HMRC says its upto £55 a week or £243 a month see http://www.hmrc.gov.uk/leaflets/ir115.pdf

and the HMRC logic is based on the possibility of there being a 53 week payment year rather than 52 weeks...

[7of9]

different amount

There is no need to use a voucher scheme - you can simply set up an agreement between the childcare provider and your company for part of the fee (£243) to be paid by the company.

You need to ensure that a copy of the agreement is retained for the company's records in case of an enquiry by HMRC.

Hope this helps!
Craig

Hi Graig,

My account manager said mine is 55 pounds per week so roughly 238 pounds per month. I take 7680£ salary, is that the reason why my limit is slightly lower.

Thanks!

[Clare@InTouch]

Just to add to what Craig rightly said - if your child is too young for nursery then you may want to consider buying vouchers as you can save them and use them at a later date. You'll incur an admin fee from the voucher provider, but it will enable you to save the vouchers for later.

[Lance]

Perfect. Thanks Craig.