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  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 14th Mar 17, 3:56 PM
    • 238Posts
    • 159Thanks
    Former MSE Sam M
    Guide discussion: Tax-Free Childcare
    • #1
    • 14th Mar 17, 3:56 PM
    Guide discussion: Tax-Free Childcare 14th Mar 17 at 3:56 PM

    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.
Page 5
    • rpc
    • By rpc 27th Oct 17, 1:22 PM
    • 2,301 Posts
    • 3,493 Thanks
    rpc
    If for instance I was earning £50,000, but upped my pension contributions through salary sacrifice to bring my earnings down to £45,000 - would I fall into the basic rate tax band for childcare vouchers?
    Originally posted by robertoegg
    Your employer will carry out a basic earnings assessment at the start of the tax year - it remains valid for the whole tax year regardless of changes in circumstances.

    Pension payments do reduce your income for the purposes of the assessment.

    Relief at source and net pay arrangements all count the same, but NB a personal pension (other than a GPP through your employer) doesn't count because it is nothing to do with your employer.

    Full details online at https://www.gov.uk/government/publications/employer-supported-childcare
    • jetlagged
    • By jetlagged 9th Nov 17, 12:31 PM
    • 5 Posts
    • 1 Thanks
    jetlagged
    Our second child is due to arrive at the end of this year. Would I be able to benefit from the £2k TFC credit for each children but just use all the money in the account to pay for childcare for yourger one later on next year after shared parental leave? Or does the money need to be used for the specific child it's paid in for?
    • melkka
    • By melkka 12th Nov 17, 9:07 AM
    • 3 Posts
    • 0 Thanks
    melkka
    I wonder if you could help with this...
    My husband workplace doesn't offer vouchers however mine does. Our childcare bills are £650 per month. Would we both be better in the TFC or can he join and I remain on the voucher scheme?
    • Pixelgray
    • By Pixelgray 6th Dec 17, 7:13 PM
    • 1 Posts
    • 0 Thanks
    Pixelgray
    HELP!! Tax free childcare account issues
    I applied for my tax free childcare accounts ages ago and was issued with one each for both of my children.
    At the time my youngest wasnít eligible for 30 free hours due to being too young but my oldest was issued with a code (despite being at school already).
    I reapplied for my youngest when she became eligible for the 30 hours, BIG MISTAKE. Computer now sees me as trying to make multiple applications for the same child. Apparently this is not an uncommon occurance and they are trying to get a fix for this round of people applying for codes.
    Despite this happening I was assured that I could use the TFC part of the account. I waited a couple of months as I wanted to make sure my company had stopped making payments to my voucher company. Last month was the first month this happened.
    I paid money into my account on the 27th November. Itís wasnt topped up. I waited a couple of days and called up to see if the payment was definitely scheduled.
    On the 29th November I called up (who the hell am I calling anyway? HRMC?) and was informed that I couldnít use the account as I couldnít reconfirm because of the additional application. I asked for my money back to be told that I would have to wait 3-5 days at which point I said this was unacceptable, after much to-ing and fro-ing it was agreed they would do a CHAPS payment to me.
    I was assured it would happen, that a manager would call me that afternoon to confirm the payment. That didnít happen and the money didnít arrive.
    I called again on 29th and at this point lost the will to live. I agreed to a manual payment (taking 3-5 days) as I couldnít be bothered to argue again to someone else.
    I called again today (6th December) to check the status of this payment to be told nothing was scheduled.
    New person told me that they would arrange for a CHAPS payment today, it hasnít arrived yet again.
    I am talking about £1300, £1300 I have had to find Ďspareí to pay my childcare provider who I have a legal obligation to. £1300 Ďspareí I have had to find just before Christmas.
    My questions are : 1) who do I complain to? I went through to their complaints department who just apologised, could do nothing else, offered no solutions.
    2) how do I get my money back. I have no money, I am now in debt and have credit card bills racking up.
    Thanks in advance, from a slightly stressed mum of two!
    • IvysMom
    • By IvysMom 7th Dec 17, 12:56 PM
    • 2 Posts
    • 0 Thanks
    IvysMom
    Hi Pixelgray


    I feel your pain I have been trying to set up my account for 4 months have put in two official complaints and made numerous phone calls all of which have been ignored. The Adjudicators Office deals with complaints about the HMRC but you need to go through two tiers of complaints with the HRMC first. You can complain to the HRMC online, another phone call mentioning that you will be speaking to the Adjudicators Office may help. The HMRC also has a facebook page were you could complain, although don't expect a response to it.


    Really hope that this is sorted for you soon, it is so stressful dealing with the HMRC.
    • Mupette
    • By Mupette 8th Dec 17, 8:03 AM
    • 4,230 Posts
    • 6,931 Thanks
    Mupette
    I wonder if you could help with this...
    My husband workplace doesn't offer vouchers however mine does. Our childcare bills are £650 per month. Would we both be better in the TFC or can he join and I remain on the voucher scheme?
    Originally posted by melkka
    Unfortunately TFC is family based so if one of you goes, you both go.
    Childcare Vouchers are single based, therefore both of you could have vouchers if your husband's employer had a scheme.

    GNU
    Terry Pratchett
    ((((Ripples))))

    • Danielson1971
    • By Danielson1971 11th Dec 17, 12:26 PM
    • 4 Posts
    • 0 Thanks
    Danielson1971
    Hello,


    I too am one of the people that is unable to use this system due to a technical error at the HMRC end. I won't go into detail however suffice to say this is by far the worst experience I have ever had for customer service and complaint handling. My issue started in September and has not been rectified, despite all of my calls, complaints and attempts to get some kind of answer. No one is accountable for the issue at HMRC and no one calls back, which leaves me in limbo whilst the issue is resolved. Each month I now have to find from nowhere an additional £320 to pay for nursery fees (overall bill is £1600 per month).
    The staff are polite but helpless. There is no escalation procedure and there is no way of talking to anyone in authority. In desperation, I have contacted my MP - I should not have to do that. Even he is ignoring me now. So, I'd like to know how many other people are affected by this and why it is taking so long for someone to at the very least call me or email me to tell me when it will be fixed. And why is there no suitable complaints process in place? And why are the managers who are responsible not being held accountable for this disaster. And why does no one seem interested in helping? So may questions, and all potential avenues for communication/resolution are frankly dead ends.
    • sheramber
    • By sheramber 11th Dec 17, 6:30 PM
    • 3,977 Posts
    • 2,956 Thanks
    sheramber
    If it is a technical problem it will be nothing to do with the managers. It will be computer programming problems which will be the responsibility of an outside company who are contracted to provide the system.

    You can claim compensation https://www.gov.uk/government/publications/childcare-service-compensation

    http://www.telegraph.co.uk/money/consumer-affairs/tax-free-childcare-scheme-delayed-parents-older-children/
    • Danielson1971
    • By Danielson1971 11th Dec 17, 7:47 PM
    • 4 Posts
    • 0 Thanks
    Danielson1971
    Thank you Sheramber, yes I quite agree with your post.


    I have read many of these links and made 3 compensation claims now.
    My 2nd one (made on 3rd November for £400) is still to be paid back to me.
    My third likewise, although the claim has only just been made.


    My issue remains unresolved and no one takes responsibility or ever replies to me.
    In my opinion the managers are still responsible for providing a high quality of customer service with acceptable levels of communication and they are falling well below this.
    A proper escalation process would be a start and regular communication as to the status of the issue would also be the minimum I would expect.
    But instead nothing.

    I have complained 3 times using an on line tool and each time I receive an automated email stating I will receive a reply back within 5 working days.
    My first complaint was made in early October and I am yet to receive any communication or answers to the complaint.


    The adjudicator's office is unable to deal with an escalation because they need an answer from HMRC first. But HMRC don't ever reply. The system is clearly not fit for purpose therefore.


    No wonder I feel so angry about it and I can't believe I am the only one who feels the same way or is having such issues.


    I'd love to find out how many other people are affected and how this could be moved up HMRC agenda for the good of all of us.
    • IvysMom
    • By IvysMom 13th Dec 17, 6:32 PM
    • 2 Posts
    • 0 Thanks
    IvysMom
    The system is shambolic to say the least. I have written to the Adjudicators Office and awaiting a response. I have put two complaints into HMRC online both of which they say have been responded to, I havent heard a thing. As far as Im concerned that id taking my complaint to tier 2 of their complaints system so have passed it to the Adjudicators Office. Not holding out much hope for a response from them either, you cant even email them everything has to be done by letter! What century are they living in?
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