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

theladsmum

emeraldbugle wrote: »

Thanks, but it can be done. The employer can agree to base benefits on the pre sacrificed salary. It can also show on your payslip as a separate amount which you can then use for mortgage applications.

It will just be any statutory benefits that are based on the lower salary, I'm hoping I won't need those!

Absolutely correct - the scheme my employer runs does not affect my pension. Don't know how they go about it - think they have to agree it with the pension scheme?

eljayjay_2

Just to tell people to watch out, I found out the scheme my employer offers isn't a voucher scheme although it looks just like one - it's "directly contracted childcare". My employer wrote to my childcare provider saying they would buy an agreed amount of childcare for me, the sum is taken out of my salary through a sacrifice, no vouchers change hands. The difference is, you can't save it up - you can only sacrifice salary in a week in which childcare is provided - so realistically you'll never get the full £243.

My employer didn't actually realise this until I pointed it out and are say they are going to change it :T But read your terms and conditions carefully!

diabroughton

My employer was looking into opting in to the scheme to support staff with families. The investigation lead them to conclude that it would cost the company money as, if it offers vouchers to employees it would have to continue offering them when employees were off ill. We have some issues with long-term illness at work and my employers concluded that it would end up costing them a lot of money, so ditched the idea.

Has anyone else come across similar?

My creche fees have just gone up (19mth old and 3yr old) and I am dreading the withdrawal of our tax credits in April (hubby & I both work F-T - income over £40k). Vouchers would make a real difference.

Many thanks for any responses / advice.

Diane (previously a lurker and finally joining in )

ManiN

Hai Everyone
I am Tier 1 General Migrant. I pay tax and NI. Am I eligible to claim child vouchers or does it come under public funds?

Louise88_2

I currently have a 1.5 yr old and have been getting the vouchers since Jan 2010. I am now pregant with my second child, due mar 2011 and would like to know if i would have to keep paying for the vouchers from my mat leave or could I stop for my maternity (in mar 2011) and then if i re-started (which would be after April 2011) would I then only be able to get the full tax saving from a higher rate earner that I get now or would I only then be able to get the new lower amount?
Any advice appreciated
Thanks

Svea

Louise88 wrote: »

I currently have a 1.5 yr old and have been getting the vouchers since Jan 2010. I am now pregant with my second child, due mar 2011 and would like to know if i would have to keep paying for the vouchers from my mat leave or could I stop for my maternity (in mar 2011) and then if i re-started (which would be after April 2011) would I then only be able to get the full tax saving from a higher rate earner that I get now or would I only then be able to get the new lower amount?
Any advice appreciated
Thanks

Hi, your employer cannot deduct anything from your SMP so you will still be able to receive the vouchers even though nothing gets deducted from your 'pay'.
This is because the vouchers are not a normal deduction from your pay, but a salary sacrifice. This is a change in your contract saying 'we should be paying you £2000 a month but instead we will be paying you £1800 and give you £200 in non-cash vouchers instead'. So when your mat leave comes round, your employer will give you SMP plus any other occupational pay (I.e. If your employer were to give 50% of your salary for 3 months or whatever), AND the vouchers. Even if you do not receive any further money after 9months you will still be entitled to the vouchers because they form a non-cash part of your contract. Your employer cannot stop them because that would be sex discrimination.
In short, I think it's worth keeping the vouchers throughout yor mat leave. Your SMP of £540ish will be boosted by the voucher of £243 max which is quite the bonus!!

The only downside is that your iniyial6 weeks at 90% will be calculated using your slightly lower sacrificed salary.

Hope this helps

iwilldoitthistime

Hi

Ive used childcare vouchers for the last couple of years in nursery and have built up a bit of a 'backlog' in my account. My child has now gone to school and I intend paying for breakfast club with the vouchers. Does anyone know if I can use some of my vouchers to pay for a friends breakfast club too? I have such a backlog it would help to use them up!

thanks

rocky_robin

Has anyone seen the ECJ ruling on employers having to pay VAT on the vouchers? There was an article in the Times on Sunday which suggested that HMRC may look into applying VAT to the vouchers, in which case I'm pretty sure my employer (as would many others, would stop providing the service as it would not prove cost effectvie)

The impression seems to be that a number of taxpayers who are currently just above the threshold for the loss of child benefit will join the sacrifice schemes to allow them to continue to receive CHB.

I'm not sure whether the intention is to apply it to all sacrifice schemes or whether some would prove difficult and it would also involve a change to the VAT laws having to go through parliament. On the other hand would we not be forced to take on board a ruling from the European Courts, I doubt that the British government or judiciary would challenge it

special0ffer

Hi,
I am currently on Mat leave and was planning going back mid/end April 2011. I am a higher rate tax earner and dont want to miss out on the higher childcare voucher benefit, which ends march 2010.

Can I join the scheme while still on mat leave? I realy dont want to go back to work early to be able to claim the higher benefit.

tks

sg0102

Hi there,

I've a question on the changing circumstances of the childcare vouchers scheme for anyone in the know...

We have our first baby due mid-Jan, and whilst I won't need to have childcare before September time, i plan to opt in now given the impending changes (i am a higher tax payer).

As i understand it, if you have opted in by April you are unaffected by the change?

However, I am moving jobs from the start of April, so my question is, when i start my new role, am will i effectively be "opting in" again, and hence impacted by the new changes, (so get less?), or will it be a continuation?

Hope i am making sense!

Anyone have any idea??
Many Thanks
Steve