Childcare vouchers on maternity leave?

Googlewhacker

surreysaver wrote: »

They save on tax and national insurance. Same as someone who isn't on maternity leave...

So overall presumable the company don't lose out....then I can see why it is a contractual right.

KaratePigeon

Thanks,
I didn't sign anything, probably have an email request somewhere where I've agreed to it informally.

I did tell them a couple of weeks ago that I wanted to stop my vouchers (again only in an informal email), that was because I wrongly assumed that if I continued to recieve them then they would be taken out of my SMP. So I realise they could use that as a change of contract and say I'm not entitled to them now. But even if I don't get them I feel like I should explain to them that they are doing it wrong and that the other ladies here on mat leave should get them...

KaratePigeon

fiona242 wrote: »

As for you SMP, if your employer is calculating this on your full salary they are wrong! SMP should be calculated on your NI-able pay, so if the scheme really is salary sacrifice then your NI liability is reduced. The calculations should be based on that lower figure.
QUOTE]

Yeah, that's what I've tried to explain to them. though then I think I'm going to regret doing this as I'll end up with less SMP! (also was quite handy having my 'official' salary at the higher level as will help with applying for a mortgage.) But I suppose that isn't the issue, they need to be doing this right.

anyone know about getting the money back if I didn't use it on childcare vouchers? I know it sounds a bit bad but I was just confused as to what is stopping me doing it, if that's something that I can do now?

evergreen

My daughter's company didn't realise the law changed in October 2008. Apparently while you are on SMP your company must pay you the vouchers and if you take the additional 3 months after that they must pay the vouchers. This has resulted in some companies withdrawing from the child voucher schemes as the benefits of not paying employer NI on the scheme has been lost through paying the vouchers during full Maternity leave.

Googlewhacker

evergreen wrote: »

My daughter's company didn't realise the law changed in October 2008. Apparently while you are on SMP your company must pay you the vouchers and if you take the additional 3 months after that they must pay the vouchers. This has resulted in some companies withdrawing from the child voucher schemes as the benefits of not paying employer NI on the scheme has been lost through paying the vouchers during full Maternity leave.

It's not surprising, a company tries to help out and ends up getting stung over it...why bother I guess is what they are thinking.