Nursery Fees

mercman_3

We have our own business. Now our baby daughter is 6 months old, wife wants to return to work.

As she is returning to the business, can we claim the nursery fees against the business? Naturally wife needs to be in the business for it to open and cannot take baby into the workplace, so, no nursery = no business

Cant get an answer out of our accountant.....by the way they are useless!


Cheers

Pete

skippy64

Tongue in cheek answer I'm afraid
Put your newborn on the payroll and claim that the nursery fees are 'training expenses' for all the new life skills they will be experiencing.

Seriously I think the answer is a resounding no as these would be classed as personal expenditure/drawings if you made payment from your business account for the fees.

wonka

Well you can always buy childcare vouchers through your business legitimately. If you're both in the 40% tax bracket, then you'll save 40% in nursery fees.

skippy64

wonka wrote:

Well you can always buy childcare vouchers through your business legitimately. If you're both in the 40% tax bracket, then you'll save 40% in nursery fees.

Never knew that, mind you my two kids are 17 & 10 so along time ago since attending nursery.
Best of luck to the OP though, you never know since the chancellor becoming a dad recently he'll be looking at the best tax breaks for himself!!

heleen

I can confirm that you cannot put nursery fees on your business expenses, wihtout it being seen as a benefit. As has been mentioned you can get £55 a week (oddly for 53 weeks in a year so basically £243 a month) as a tax free benefit FOR BOTH OF YOU. Each employee has a right to this tax perk so your company could offer both of you the chilcare vouchers (salary sacrifice or additonal benefit) and you would get close to £500 tax free per month, which is enough in my nursery for 3 days per week but maybe yours is cheaper.

You could always pay the remainder as a benefit for which you would get taxed but it's then the same as taking it out as salary so still potentially cost effective depending on your personal & busienss circumstances..

Heleen