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

Ama

htafclover wrote: »

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!!

When you enter into a salary sacrifice agreement, you give up a portion of your pay in return for a benefit (ie vouchers in this case). When you go on mat leave, you retain all your contractual rights and benefits (ie annual leave, childcare vouchers, etc) apart from remuneration (ie pay). Your employer must therefore continue to provide you with all your benefits throughout your maternity leave.

The long and short of it all is that they CANNOT ask you to pay anything back when you return from mat leave.

Ama

kizmet106 wrote: »

Hi

I am lucky to get childcare vouchers through my work however my daughters school has refused to accept them, has anyone else had this?

You can only use childcare vouchers for childcare and not education! Childcare vouchers cannot be used for school fees.

weaholt

My husband is a higher rate tax payer so he registered in the scheme last week and we received a welcome pack. He has requested £140 of vouchers from his next payday which is the 21st of April, does this mean we miss the boat because we can't get the vouchers until after the changes on the 6th?

Is there anything we can do?

Thanks in advance

Maria xx

Ama

weaholt wrote: »

My husband is a higher rate tax payer so he registered in the scheme last week and we received a welcome pack. He has requested £140 of vouchers from his next payday which is the 21st of April, does this mean we miss the boat because we can't get the vouchers until after the changes on the 6th?

Is there anything we can do?

Thanks in advance

Maria xx

Hi Maria, your husband joined the scheme before the 6th so he is fine. What matters is when they joined the scheme and not when they receive their vouchers.

Spendless

Do the changes for higher rate tax payers mean that they only get relief as basic rate tax payers. Or that they still get 40% tax relief but can't salary sacrifice for as much per week (I've seen around £28 per week mentioned)?

I don't currently use or need vouchers (have used them in past) as I have a school hours job and can cover the majority of school hols with AL and family help, but it is a temporary position so things may change. Am only likely to need childcare for 1 child though, which will make a difference cost wise as eldest will soon be at Secondary school.

abihelp

URGENT HELP NEEDED!

A few people have told me that Martin Lewis said (on breakfast TV a few weeks back) that you could register for childcare vouchers before the changes come in on 6th April, even if your child isn't born yet.... However my employer won't let me do this, and i've now found information on the HMRC website that suggests otherwise! I'm confused!! please help if you can....

Can an employee join my scheme before his or her child is born?
[FONT=Arial,Arial][FONT=Arial,Arial]No – your employee must be a parent or have parental responsibility for a child at the time they join your scheme. [/FONT]
[/FONT]

yorkshire_matt

Hi, Urgent help needed here too....

My wife is currently on Maternity Leave - can she apply for vouchers now? She has 3 months left to run of her mat leave...

Thanks v much!

Matt

onlyroz

Would your employer let you set up a scheme with a token payment, e.g. £1 a month?

Judith_W

abihelp No def can't join before baby born.
yorkshire matt - the rules allow mums on mat leave to be reported to payroll before 6th April with a request for vouchers effective for April, but with money coming from the next available salary ie once she returns from mat leave. Provided this payment for vouchers is taken from salary before April 2012, she will still be in the existing scheme rules. This is all assuming payroll are happy with that - which they usually are.

Ama

yorkshire_matt wrote: »

Hi, Urgent help needed here too....

My wife is currently on Maternity Leave - can she apply for vouchers now? She has 3 months left to run of her mat leave...

Thanks v much!

Matt

Childcare vouchers is a benefit. An employer cannot refuse an employee entry into the scheme because she is on mat leave. They can have reasons for not allowing people to join but maternity leave cannot be one of them as it would constitute sex descrimination.

You may find this useful http://www.daycaretrust.org.uk/data/files/Information_Services/Factsheets/childcare_during_maternity_leave_april_2011.pdf