Childcare Costs discussion

edited 15 June 2010 at 1:33PM in Marriage, Relationships & Families
190 replies 81.1K views
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  • kyhkyh Forumite
    278 Posts
    My husband has recently had to give up work to look after our little one. When we were both earning we were just over the level for even the lowest amount of help with childcare costs. We then had to move because of my job - childcare costs doubled and this and the amount he would pay in travelling to work actually meant we would not see any of his wages. He now stays at home with her and she goes to nursery part time - so we are still not entitled to claim as he can look after her - would prefer her to be in full time nursery as she enjoys it so much. This means we are £800 per month worse off than before!
  • dangersdangers Forumite
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    If you are looking after another child for more than two hours a day and receiving a 'reward', then you have to be registered with Ofsted. A 'reward' can be in the form of money or childcare in kind. If you cover each other for childcare then I believe that Ofsted look at this as you are receiving a 'reward'.
    Hope this helps - sorry been a bit difficult to explain
  • I have a child who is 1.5 years old and we would like to put him in some sort of nursery a few days a week.

    I'm wondering if there is any way that we can get the childcare vouchers? My husband has his own business of which he is the director and sole employee. He pays himself a very small salary and the rest is paid as dividends to the company. He earns about £50,000 per year but as he works as a contractor each year is different. I do not work as I suffer from depression. We are not claiming any benefitsm all we get is child benefit. We would be able to afford childcare but we live in London where we pay very high rent and where the average cost of nursery is at mimimum £50 per day hence why we are looking into the childcare vouchers.

    Could he forfeit some of the salary he pays himself and get the vouchers since in theory he is an employee of his own company?

    how would this work?

    Thanks.
  • i dont know if this will help, but my husbands employees use www.leapfrogvouchers.com

    Maybe speak with them direct and see if they can help you ?
  • SlinkySlinky Forumite
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    I think the answer to the question is yes he can do this. I seem to recall reading about this a few years ago, but sorry, I don't have kids so it doesn't apply to me.

    Do a bit of digging about or maybe try speaking to the taxman?
  • whmonwhmon Forumite
    3 Posts
    When you log onto the Ofsted website, you cannot see any childminder/nurseries name. It is purely by their registration number. This makes it much more difficult to scam as they need to tell the inland revenue of my name and address too. I often give prospective parents - who are genuine, my number so they can read my inspection report online.

    I have also been contacted probably 5 times in the last 2 years asking if I am providing childcare for X. Each time, they've wanted to know what I'm being paid, cash or cheque, and are the payments up to date. Maybe it's a regional thing, but I know many childminders around here have been asked the same things. I was once phoned too.

    Y-L
    Yorkshire Lady, Log onto the OFSTED site, key in any area postcode, see the list of providers in that area, click onto the name of any of those providers, get their OFSTED number, simple as that! (and help yourself to name and address from the OFSTED report.)
  • I don;t use a voucher - as I'm the only employee who uses a nursery we set up a salary sacrifice scheme where nursery bill my company direct and they pay (as long as it is under £50 per week) I then have this amount deducted from my gross before tax and Ni calculation . Its great is saving me about a quarter of the bill in tax and Ni and the company save employers ni as well.

    This will only work if nursery bill is less than£50 per week. I found all the information I needed on Revenue website.
  • Savvy_SueSavvy_Sue Forumite
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    LINKING TO ARTICLES

    Hi, Martin’s asked me to post this: There’s an article on the main site you might like to read that gives more information on this subject.

    Also we already have a discussion article so I will merge you into that. You may find some of the previous answers helpful.
    Signature removed for peace of mind
  • Hi A customer of mine mentioned that his company used a scheme run by TEDS which allows you to pay for your nursery directly from your wage at source thus not paying tax or NI. This seems to be over and above the £243 childcare vouchers which most employers offer.

    Both nursery and employer need to sign up to it and I am not sure I understand it completely. There is a fee for set up, but it seems as if the ongoing fee is taken out of cost savings. Want to know more details before I try to talk my employer into doing this.

    If it is for real it would save me about £4000 per year in tax (£8000 when number 2 goes next year).
    Has anyone heard of this?
    http://www.teds.uk.com/
  • PS this only appears to work if the bill is over £350 per month as I guess under that you would just use the £243 from CCV
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