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

shibumi

Ama wrote: »

shibumi wrote: »

The bursar at my childrens school has said that the rules for childcare voucher use are not very clear when it comes to max age to which they can be used.
Can anyone clarify this please?

The school say that the rules that stand at the moment allow the vouchers to be used up until 'compulsory school age' ie not beyond the term in which the child is 5. If this is true my daughter (february birthday) should be able to make use of the vouchers in the first two terms of her reception year at private school. This would be a substantial saving of about £2000 but I'm relauctant to keep paying in if this is not true.

Please help
Thanks

Childcare vouchers can be used up until your child turns 16. You cannot use childcare vouchers for school fees.

What is the definition of school fees? Up until compulsory school age (term following 5th birthday) the fees may be considered 'voluntary' and come under the early years learning expenses?/nursery fees?
It is a grey area that needs clarification

I would be interested to hear from anyone in the same position

Thanks

MrsTinks

rocky_robin wrote: »

They propose to stop employers setting up the schemes from 2011 and stopping the salary sacrifice altogether from 2015, on the grounds that too many higher tax payers are benefitting from the scheme.

They propose to use the money to provide 10 hours free childcare to parents with a 2 year old child, if the family are on “low income”.

If they scrap it it will cost us nearly the maximum that it's possible to benefit... I'd get about £900 benefit a year from it and hubby about £110 or whatever the maximum is... he's only just in the bracket for the upper tax bracket and frankly it's going to be a squeeze to pay the nearly £10k a year that child care will cost us if we couldn't get just under £2k in tax benefits... Not like we don't still have a mortgage and bills to pay! This is the only break we get and it annoys me no end that yet again we'll be penalised for working hard...
If this comes into effect to be honest it'll very likely to be the straw that broke the camels back - either I'll have to quit work or we'll look to move abroad to work because it's becoming financially unviable to remain here. If they are trying to run the middle earners out of the country and leave it with a skills shortage they are doing the right thing. Even driving the women out of the workplace if they don't leave the country... It's utterly stupid if you ask me!
Encourage people to work! Don't penalise them for working!

Mazcabs

Hi all, need some advice, I've just had my second child a couple of weeks ago and and currently have childcare vouchers for my first child. I'm on 6 weeks at 90% and then just SMP so dont know whether to cancel childcare vouchers while I'm on ML or carry on taking them. Dont know which will be better option with Tax credits people and which will benefit me more.... any advice?

AshleyB71

Daddy2005 wrote: »

We have a toddler and we want to send him to the nursery in about 6 months. Is it possible to start collecting the vouchers now and then use the lot to pay for full time care? I suppose that the electronic vouchrers would not work this way. Do any of them have an expiration date? Also, as far as I understand, you have to stay with the scheme to the end of tax year, but is it possible to join in the middle of the tax year?
Thanks a lot for your comments,
Daddy2005

There is NO expiry date on most of the Childcare Voucher Companies, and you can accumulate funds to be spent as and when. However, they can ONLY ever be spent on Child care.

AshleyB71

It was quietly done by the current Labour Government that Tax relief and National Insurance contributions relief was to be changed from 1st April 2011. This Was done in December 2009!
As such now there will be ONLY 20% Tax Relief on the vouchers (so any higher rate 40% tax payers will immediately be over £600 worse of a year) and NI will also be taken off (so EVERYBODY will be over £300 worse off a year even on the lower £20% tax rate).
Thats what you get under Labour people....stealth taxes on childcare!

Judith_W

HMRC advises that childcare vouchers can be used for private school fees before it is classed as compulsory education ie term after turn 5.

the basic rate for higher rate tax payers is only for new joiners not for those currently in the scheme so get in quick if you can and are a higher rate tax payer

Judith_W

ps little known side effect of the sex discrimination amendment in Oct 09 I think it was means that if you are receiving CCVs before you go on mat leave the company should continue to provide these during mat leave, and as they cannot take a deduction from SMP they give it to you free.

If you get a return to work bonus or enhanced SMP they can take it from that though...

Dazza_Jones

Hello everyone, i was hoping to get some advise if possible....

Have just joined computershare childcare voucher scheme as our daughter will be going to nursery in July. One of the questions when regestering for the vouchers was 'are you opted out of the second state pension'...i answered yes, because i am!

Does anyone know if i am likly to get more benefit from the vouchers if i opt back in, or does it work on the fact that (and i think im right in saying this) i pay less NI due to being opted out, and so make no difference.

Im finding all this very confusing and would like some advise if possible, we really need the savings now as its a very big struggle to make ends meet!

Thanks for your time..
DJ

Dazza_Jones

Well ive found out that i can get a 22% savings on the £243 if im opted out of the second state pension.

Anyone know the percentage rate if im opted IN to the second state pension?

Darnit_2

Any one know how this works with Au Pairs? The literature states that the vouchers can be used to pay for au pairs. However, au pairs are not usually registered or approved. Looking at the OFSTED site, it seems to be that they are possibly classed as "home carers" and can volunraily register. But that apprears to cost around £140 and takes 12 weeks. I assume you need to do this every year, and so this makes it a less cost effective method of child care.

Any one know if any au pair agencies provide already ofsted approved au pairs?