Childcare Vouchers: cut childcare costs by £1,000/year Discussion Area

AngeMac

I have been told that with these child care vouchers, they can affect how much maternity pay you will get in the future because you are lowering the amount of national insurance that you pay while you use them? Is this correct? I have one child and will probably one day want to have another but don't want to be penalised later on?

Thanks

AngeMac

kisherwood

Do you know if the maximum you can claim for child care vouchers is likely to increase fromthe current £243.00 per month?

Money_Maker_Shaker

AngeMac wrote: »

I have been told that with these child care vouchers, they can affect how much maternity pay you will get in the future because you are lowering the amount of national insurance that you pay while you use them? Is this correct? I have one child and will probably one day want to have another but don't want to be penalised later on?

Thanks

AngeMac

Yes you are right but it's not quite as bad as it seems. You only need to stop claiming the vouchers when you are pregnant during the assessment period for maternity pay i.e weeks 17-25, in order to avoid you not getting your full smp entitlement.

Quote from Busy Bees childcare voucher website;
"If you are taking vouchers and become pregnant, you should stop your childcare voucher order by the end of week 16 of your pregnancy. Since SMP is calculated on NI-able income, your benefit may be affected if you continue to take childcare vouchers through your salary during the 8 week assessment period (weeks 17-25). This depends on your dates and when you are paid."

HTH

Tom_S

The 'voucher' is just a way to get the benefit fromthe Government. The actual scheme is a benefit to allow you to get some of your childcare fees paid pre tax. Your employer (and if you have your own small company - that's you as an employer helping you as an employee!) can arrange to pay the £243 a month direct to a childcare provider.

The savings (as discussed) have not mentioned that the EMPLOYER also saves money in that the amount sacrificed does not attract EMPLOYER NIC. And this is what the Voucher companies eat into as they charge for their service.

If you google HMRC Employers Childcare - it gives you all of the options and you will see that the scehme is called Childcare Assistance which CAN (Not MUST) be paid in vouchers or can be paid direct.

Hope that helps small companies not pay for vouchers - and save themselves some money.

Good childcare providers will be able to help you understand (UNLESS THEY RUN VOUCHERS OF THEIR OWN!) but if anyone wants help or advice please email me.

Tom_S

ianmr65 wrote: »

I left my employer about 6 months ago, with about £600 in the accor childcare vouchers account. I don't need them anymore, and want to get a refund. Accor say they are not able to do this, and i have to claim through my employer. My ex-employer says i need to talk to accor.

Anyone else been in this situation, if so what's the best way of getting my money back

Thanks

ian

Ian
The money has been paid BY YOUR EMPLOYER to the Voucher Company - for you to spend. If you choose NOT to spend it - the Voucher Company should be requested BY YOU to pay your employer back for these unused vouchers and notify you that they ahve done this.

Your company should then be able to pay you the £600 LESS TAX AND NIC as, effectivley, it is no longer for childcare.

selbs

i have heard of busy bees but thats all

i am confused - how much can i claim in vouchers - i have 2 children and the cost of childcare will be approx £150 per week

also will i get tax credits as well as a the tax saving in the vouchers?

HappySad

I have read the article. Can childcare vouchers definately not used for private school fees?

just_looking_2

I'm a little perplexed, I've just rung to renew my tax credit form over the phone, and been asked if I am part of a salary sacrifice scheme, I said yes, then was given an address to send stuff to- payslip before and after sacrifice started, a copy of my contract of employment, a copy of any booklets I have been given about it! I asked why to be told 'I don't really know' when I stated that these were quite personal documents requested, and I would like to know for what purpose these are required I was told it was because 'they would decide whether or not your tax award should include the amount of sacrifice you make!'. Whats that all about???? I thought they were a perk that meant you paid less tax--are they going to give with one hand and take with the other now??

sam1970

i am sorry if this has been asked before but i have been using busy bees for two years and i just remembered that my son is going to school in september so i have got now 7 vouchers (£243 each) which i did not use yet (as a result of some months being covered by the government grant for over 3 and other things).....will i be able to claim the money back (after taxation)...i really cant afford to lose nearly £1800 and the vouchers will be useless to me after august!!!

shirlgirl2004

HappySad wrote: »

I have read the article. Can childcare vouchers definately not used for private school fees?

They def can't be used for school education but if there is an after school club then it can be used for that. Depending on the school they might take it to cover fees before the age of 5 under the nursery care element. DDs old school would take them but the new one said they were told by Ofsted that as it is not child care then it isn't eligible.