Tax credits renewal help - childcare vouchers

2

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  • Hi there. Following on from this I phoned up to renew my benefits and have been told that as Child care vouchers are a salary sacrifice scheme I have to send a load of items to a specific department in Liverpool (eg New contract!?!?!?!) I haven't had any changes in employment and this scheme is the same as it was last year. Has anyone else had this request??? Cheers
  • mark13
    mark13 Posts: 367 Forumite
    First Anniversary Combo Breaker First Post
    We are having the same problem, having opted for childcare vouchers as a salary sacrifice.
    I spoke to the tax credit people, and was asked for all manner of documentation, original contract of employment ( that was some 20 yrs ago) agreement between employer and voucher provider, before and after salary sacrifice pay slips... grrrrrr.... nothing has changed other than taking a salary sacrifice... very very beurocratic... as far a I can see there is no where on the form to specify hoew many vouchers are being claimed which can be offset against CTC.
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  • mark13 wrote: »
    We are having the same problem, having opted for childcare vouchers as a salary sacrifice.
    I spoke to the tax credit people, and was asked for all manner of documentation, original contract of employment ( that was some 20 yrs ago) agreement between employer and voucher provider, before and after salary sacrifice pay slips... grrrrrr.... nothing has changed other than taking a salary sacrifice... very very beurocratic... as far a I can see there is no where on the form to specify hoew many vouchers are being claimed which can be offset against CTC.

    Same here, just off the phone to them.
    They are wanting documents which don't even exist as far as I know 'agreement between employer and voucher provider'? Never seen such a thing. I can produce my original contract of employment but like you it was from over 20 yrs ago. Total nonsense, how exactly are we meant to claim? Beyond a joke.
  • KevinG
    KevinG Posts: 1,863 Forumite
    Name Dropper First Post First Anniversary
    Gosh this is confusing. I hadn't thought about childcare vouchers in relation to a Tax Credits claim. Perhaps someone could have a read of this and work it out - I would if I didn't have to go and cook dinner!

    http://www.hmrc.gov.uk/childcare/interaction-tc-cv.htm

    I assumed that the P60 taxable pay figure was correct, but having just checked my wife's P60, the taxable pay has not been reduced to take account of the vouchers, only her pension contributions, which seems wrong, as the vouchers appear on her payslips.

    If and when HMRC deign to send us our renewal pack I'll have to work out what to put on it.
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  • acer99
    acer99 Posts: 6 Forumite
    I have wasted half a day now trying to find out the answer to this question and getting nowhere. Just tried phoning the tax credits helpline twice but after listening to all the automated options, I'm told to call back later because they are too busy and promptly cut off. That sums up the whole thing to me! Last year I asked a question about my ISA interest and was told the wrong answer. I honestly believe that a more complicated system coulkd not be developed and that nobody in the whole country actually fully understands tax credits. So after my rant, my question remains:

    Which salary figure do I declare? P60 or P60 minus salary sacrifice (which was for childcare vouchers).

    Any help or links to official documentation (which I can't find) greatly appreciated.
  • lorelai34
    lorelai34 Posts: 141 Forumite
    You would need to declare the p60 figure not the p60 minus the salary sacrifice. The tax credit office need to see documentation relating to the salary sacrifice so if they haven't seen it then you can't make the dedction.
  • KevinG
    KevinG Posts: 1,863 Forumite
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    lorelai34 wrote: »
    You would need to declare the p60 figure not the p60 minus the salary sacrifice. The tax credit office need to see documentation relating to the salary sacrifice so if they haven't seen it then you can't make the dedction.
    That does seem to be the consensus of opinion. The link I posted was all about how the vouchers can affect your claim for childcare costs, not what income figure you declare and this seems to be the reason they need to know about them. Basically, if you pay for childcare using vouchers, even though you have sacrificed salary to get them, you will not be deemed to have paid for the childcare so will not get help with those costs from Tax Credits. In my case, although we have received childcare vouchers in the past it is irrelevant for Tax Credits purposes since we are not entitled to help with childcare costs as only my wife works more than 16 hours a week. All IMHO of course - I might have got this completely wrong!
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  • You declare the total income on your P60. The total figure will already have the salary sacrifice deducted. The P60 total only shows the taxable amount.

    You need to send the details to HMRC so that they know about the salary sacrifice scheme, I don't know the full reasons why they want the information but they do.
  • KevinG
    KevinG Posts: 1,863 Forumite
    Name Dropper First Post First Anniversary
    You declare the total income on your P60. The total figure will already have the salary sacrifice deducted. The P60 total only shows the taxable amount.
    Not true, as several have posted. I don't know why the vouchers are not deducted from the P60 figure, but they aren't, I've checked.
    You need to send the details to HMRC so that they know about the salary sacrifice scheme, I don't know the full reasons why they want the information but they do.
    See my previous post for the reason. It's only relevant if you are claiming for the childcare costs.
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  • EMcG
    EMcG Posts: 160 Forumite
    First Anniversary Combo Breaker
    edited 27 July 2009 at 10:03AM
    I am also completely confused.

    I called the tax credits 'helpline' 2 weeks ago to see if I could claim for help with childcare. I gave them all the details as asked and told them how much I pay after childcare vouchers. The amount is £45 per week. I was told that I should get about £80 a month extra and three months backdated.

    I didn't hear anything so called again today and was told that this was all wrong and that I must send various documents including my original contract, wage slips before and after the childcare vouchers started, the agreement between my employers and the childcare voucher company as well as a document stating the 'contract variance during the scheme' to The Physical Changes In Circumstance Team in Liverpool.

    The gent on the phone has said that he thinks (givem my income) I qualify. But I'm going to find it pretty hard getting all this documentation for both myself and my wife to actually prove it.

    Martin - can you and your team look into this? It seems purposely designed to make it near impossible to actually make a claim even if you are advised that you are entitled to help.

    Also why do HMRC need all our tax details when they themselves oversee all this? Surely they have all these details? I find it weird that we have to phone up informing them of the amount on the P60 when they issued said P60 to us in the first place.
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