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

tillygirl_2

Hi
Apologies if this has been asked already - My husband has been saving the full £243 in the accor scheme since January 2011 so we wouldn't miss out after the April reduction to higher rate tax payers. My son has started nursery last week (May 3rd) and our childcare costs will be approximately £420 per month. Will we be able to pay the total £420 in childcare vouchers or will we have to pay the amount over £243 in cash/ by credit card.

my employer will not let me join their scheme until January 2012.

Thanks everyone x

Ang2105

My husband has asked his employer to reduce the amount he sacrifices for childcare vouchers as we now don't need as many - they have told him he can't do this as there needs to be major lifestyle change !?!

This can't be right can it????

FBaby

I am really NOT impressed with this scheme at all. It is 'advertised' as the alternative for those who don't qualify for WTC as if to show that we are not being totally forgotten, but the reality is that it isn't a benefit at all for many. When I lost my entitlement to WTC, I looked into it, but as my partner and I were then trying for a baby, and I gathered that joining the scheme would mean lower maternity pay, I decided not to sign up. 18 months later, no baby in the horizon, so thought about it again, but at that time, I was going through the prospect of redundancy and again, I knew it could have an effect on my entitlements. I didn't care so much as my DD was due to start secondary school and expect costs to drop by 50%. Except that we moved, my DS didn't get a place in our local primary school, has to go further, to a not so good school...and the only childcare provision is with a private company that charges twice as much!!! As i also had to extend my hours as my office has now moved 40mns away, my childcare costs will actually be more than what I was paying for my two children in their previous school... No need to say i wasn't impressed with all this, but to then find out yesterday that changes were made in terms of vouchers entitlement last April (did I miss something, i listen to the news, read the papers, am on here almost every day so HOWWWWWW did I miss it) so would hadly get a few pounds a week, which taking against the risk of more threats or redundancy, or the possibility of a miracle pregnancy means that what I would get out of it is just not worth what I could lose.

Ok, so that's how it is, fair enough, but I really don't want to hear any longer how the government are giving us, middle/higher tax payer a break too, because it really isn't a break at all.
Just a bit cross this morning

FBaby

Ang2105 wrote: »

My husband has asked his employer to reduce the amount he sacrifices for childcare vouchers as we now don't need as many - they have told him he can't do this as there needs to be major lifestyle change !?!

This can't be right can it????

Replying a bit late, but yes, that's what i found out yesterday too, you can only reduce the amount if there are major lifestyle changes or at the end of the financial year, which is exactly why I am not going for it as i stand to potentially lose more than what I would gain from joining (unless I got totally wrong, in which case, would appreciate any advice!)

onlyroz

FBaby wrote: »

Replying a bit late, but yes, that's what i found out yesterday too, you can only reduce the amount if there are major lifestyle changes or at the end of the financial year, which is exactly why I am not going for it as i stand to potentially lose more than what I would gain from joining (unless I got totally wrong, in which case, would appreciate any advice!)

I think this depends on the scheme. My husband uses care4, which only allows you to change once every 12 months. I use Accor, which I think will let you do whatever you want.

FBaby

out of curiosity, is the childcare provider who decides on the scheme and the employer has to go with that one or the opposite?

onlyroz

FBaby wrote: »

out of curiosity, is the childcare provider who decides on the scheme and the employer has to go with that one or the opposite?

It's the employer.

Ang2105

Thanks for the replies, we've had further "discussions" and we can't make the reduction until November - by which time we'll have £500 worth of vouchers in "credit" !!

We'll have to forecast costs for the whole of next year and take this into account when deciding on the new payment. And this was supposed to be easy !! :mad:

jon4122

I registered for childcare vouchers prior to the April 2011 deadline so am not subject to the reduced amounts for higher rate taxpayers however I would like to know if my registration can be transferred if and when I change employers. Will I be treated as a new joiner? Is the situation any better if both the old and new employer uses the same voucher provider?

Thanks in advance
Jon

onlyroz

jon4122 wrote: »

I registered for childcare vouchers prior to the April 2011 deadline so am not subject to the reduced amounts for higher rate taxpayers however I would like to know if my registration can be transferred if and when I change employers. Will I be treated as a new joiner? Is the situation any better if both the old and new employer uses the same voucher provider?

Thanks in advance
Jon

Yes, you will have to set up a new registration and you will be classed as a new joiner, even if you are staying with the same voucher provider.