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

JVRMac

Ama wrote: »

Speak to your employers and they should be able to get to the bottom of it. Are these vouchers paper or e-vouchers?

e-vouchers.

VKS_2

In Martin's guide it says you can backdate the vouchers. I have asked my work do to so - but after an hour on the phone to Inland Revenue, the accounts department say they have been told it would be illegal for them to backdate them. Does anyone know of anything in writing which I can send to my work?

Many thanks

Vicki

Chuffy

CCV can have an impact on redundancy pay - I've searched the article and this thread and no-one has mentioned it which I find odd.

Ama

Chuffy wrote: »

CCV can have an impact on redundancy pay - I've searched the article and this thread and no-one has mentioned it which I find odd.

Yes CCV can negatively affect redundancy pay. However, being placed at risk is a legitimate reason for opting out of the scheme.

Ama

JVRMac wrote: »

e-vouchers.

As far as I am aware, e-vouchers do not expire. Can I ask which company supplies you with your vouchers?

Ama

VKS wrote: »

In Martin's guide it says you can backdate the vouchers. I have asked my work do to so - but after an hour on the phone to Inland Revenue, the accounts department say they have been told it would be illegal for them to backdate them. Does anyone know of anything in writing which I can send to my work?

Many thanks

Vicki

I think vouchers can be backdated in certaoin circumstances. At the moment, everyone (subject to the usual conditions) can receive tax relief on £2,916 per year. This doesn't necessarily have to be broken down to £243 per calendar month. Employers prefer to give employees £243 per month because it is less cmplicated.

I think the person who runs your scheme need to speak to the voucher supplier. They are often more knowledgeable. HMRC are there to collect taxes so I doubt they will be of any help to you.

Weasy

I am a higher rate t/p and my partner is not. We have a 10 week old baby and will require some degree of paid childcare when I return to work next year. My employer defintely runs a CCV cheme. This is our first baby and I know very little about the scheme. Can someone tell me whether, if I join the scheme now will I actually have to buy vouchers now? if so, how does this work if I am on maternity leave and will not be receiving pay for some of the period I am on maternity leave.

Also, can someone explain how CCV might adversely effetc redundancy pay as some posts on this thread seem to suggest.

Many thanks

rpc

Weasy wrote: »

Can someone tell me whether, if I join the scheme now will I actually have to buy vouchers now?

Yes, although you don't have to take the full amount.

if so, how does this work if I am on maternity leave and will not be receiving pay for some of the period I am on maternity leave.

Your employer cannot stop your childcare vouchers while you are on leave nor can they take them from SMP. AFAIK they can deduct from any contractual maternity pay above SMP. In effect, you get vouchers for free.

Also, can someone explain how CCV might adversely effetc redundancy pay as some posts on this thread seem to suggest.

Vouchers are salary sacrifice - you give up some salary in exchange for the vouchers. Statutory redundancy pay is only required to be calculated against the salary you get in the reference period, i.e. after sacrifices. Not all companies take this approach though. It is the same for the 90% pay period of SMP - in the eyes of the law your salary is what you get post-sacrifice. Some employers (e.g. mine) contractually use the higher (pre-sacrifice) figure but they are not legally obliged to do so.

For example, lets say your nominal salary is £40k. You take £2k vouchers p.a. so your actual salary is £38k and it is the £38k figure that is used in statutory redundancy/maternity calculations. Note that if you, for example, stopped your vouchers at the start of maternity leave then your salary was still £38k in the reference period and your benefits will be calculated against this even though you no longer claim the vouchers. Check your employers policies - they may be more generous.

Better get your skates on if you want 40% tax relief!

Weasy

So, once my SMP starts I don't pay anything for the vouchers? I only pay during the period in which I am receiving my normal salary?

Can I take the minimum allowance to join the scheme and increase this sum when I return to work?

Is it right that the vouchers are effectively "e" vouchers with a limited life? Any idea how long the expiry period is? I am not likely to need any vouchers until early next year

htafclover

I am going on maternity leave shortly and want my childcare vouchers to continue.
My employer is quite a big significant employer in the UK so I am hoping they get this right, but what their advice is doesnt sound right to me.
Whilst they admit I will still get the benefit whilst on SMP and my SMP wont be deducted for this, they say I will have to pay back the amount when I return to work. I really cannot afford to pay this back in one lump sum, but is it right they can actually make me pay this back? as its seen as a non cash benefit in kind?

I am on a salary sacrifice scheme and currently pay £243 a month. I have searched the internet and all sites say they cannot reduce my SMP but there is nothing to say they cannot claim this back from my salary when I return to full pay
help please!!