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

irishesman

Jus_H wrote:

as far as leaving the scheme early. as per revenue and customs you are allowed to leave the scheme early for life chagning circumstances - i.e. change of hours workes, change of marital status, etc etc. However HR usually have discretion to allow employees to leave for other reasons, the key question is why do you have a surplus of vouchers, is this because you miscalculated your total childcare when entering into the scheme or is it a result of a change in your childcare costs - i.e- are you now getting free sessions or use less sessions because you or your partner are free to take care of your child.

You should be able to put this case to HR and thus be allowed to leave the scheme. Give at least 30 days notice though.

Hope this helps

Jus

Thanks for that. The surplus has arisen because I didn't realise that the county council would fund a few sessions this term, and also my daughter has been offered a place at the local school nursary a term earlier than expected. As you state, I can only leave the 'salary sacrifice' scheme in April, or during a life style change. The initial plan was to exit the scheme in April with enough vouchers to cover the nursary for most of the summer term.

I'm still waiting for HR to come back to me.

Thanks

Jus_H

Hi, Glad to help.

Considering that your surplus is due to your entitlement to the Nursery Education Grant(available to all 3 & 4 year olds) providing i expect 5 free sessions per week - I see absolutely no reason why your should be told you cannot leave the scheme. Revenue & customs rules do not state this and if you are told this, ask for documentation to prove it. - Basically - your child turning 3 and getting the NEG is a life changing event.

Insist this and make sure you can leave the scheme without a surplus.

If you do end up with a surplus, most voucher companies will arrange to have this changed into cash with you paying the required tax, however little more messy so go for plan A.:D

thriftyflower

I have asked my employer to start this scheme and this was their response:
Any childcare scheme requires approval from the Inland Revenue and on seeking advice on this matter, it would seem that there are varying views on the benefits of childcare vouchers. Consequently the Inland Revenue are consulting on this matter at a national level, in order to provide consistency across the UK. As yet this issue remains unclear.

Does anyone know any more on this?

Thanks

Woby_Tide

given vast sections of the Inland Revenue website contain details on their operation of the childcare voucher scheme it's a bit surprising that a scheme started from the Inland Revenue would need their approval

http://www.hmrc.gov.uk/childcare/index.htm

gimmegimme

HI i have read through this and im unsure if i can in anyway collect this vouchers my partner works but i don't. Do i need to work for us to be eligible for the voucher system? I pay a child minder at the moment my eldest starts nursery soon any help would be much appreciated

Spendless

gimmegimme wrote:

HI i have read through this and im unsure if i can in anyway collect this vouchers my partner works but i don't. Do i need to work for us to be eligible for the voucher system? I pay a child minder at the moment my eldest starts nursery soon any help would be much appreciated

No you don't have to work, unlike claiming help with childcare via tax credits. My husbands employer offered them and we used them to reduce childcare costs for DD at nursery so I could go to college. I don't work.

HTH

Jus_H

thriftyflower wrote:

I have asked my employer to start this scheme and this was their response:
Any childcare scheme requires approval from the Inland Revenue and on seeking advice on this matter, it would seem that there are varying views on the benefits of childcare vouchers. Consequently the Inland Revenue are consulting on this matter at a national level, in order to provide consistency across the UK. As yet this issue remains unclear.

Does anyone know any more on this?

Thanks

There appears to bit some confusion here. If i understand correctly, your employer is refusing to start a scheme because they state there is a debate over the beneifits of running a childcare scheme, and are trying to use the inland revenue as a smokescreen.

A childcare voucher scheme does not specifically need approval from the inland revenue, however approval can be requested once a scheme is set up. (With no scheme in place, there is nothing for IR to approve)

As for the benefits of a childcare voucher scheme... other than making sure your staff are happy, settled and feel valued, it has been proven that staff receiving such benefits are more likely to stay with their current employer thus saving the company thousands in recruitment and training costs. Also on the amount exchanged by an employee the employer does not pay NI contributions leading to a saving of approx £300 per annum per employee who takes the full entitlement. Hence no cost implications just good money sense

Hope this clarifies the situation, let me know if i can be of further help :rotfl:

thriftyflower

Thanks for the answers. I think they have outdated information and offer a standard response. I am going to see what the union have to say about it.


Another question: does anyone know what the effect on your pension would be?

Jus_H

thriftyflower wrote:

Thanks for the answers. I think they have outdated information and offer a standard response. I am going to see what the union have to say about it.


Another question: does anyone know what the effect on your pension would be?

There should be no effect on you pension as the contributions you make to your pension are taken at source and therfore should not change.

Regards

Jus :rotfl:

BernadetteN

cloz wrote:

Molliesmum - childminders do have to do an extra course to be able to accept the childcare vouchers and there are usually only a few in each area that do so. Not sure about what the course entails, when i did the initial course to qualify as a childminder i was told i would be able to go onto the next course and accept vouchers as i was already a qualified teacher with experience. hth

Any chance of informing me what the extra course is called that childminders are supposed to do? I am intrigued as I am a registered childminder and can and do accept childcare vouchers from ACCOR and BUSY BEES. There was no requirement for me to do any course as registered childminders are APPROVED CHILDCARE according to HMRC.

I've done a quick search on wwww.hmrc.gov.uk and came up with this list of APPROVED CHILDCARE PROVIDERS for the child care voucher / salary sacrifice scheme.

http://www.hmrc.gov.uk/manuals/eimanual/EIM22030.htm


If I wanted to accept the government 3 year old funding I would have to do a course which covers early years learning goals in the Foundation Curriculum. Is that what you are referring to? Most childminders see themselves foremost as carers of children and not teachers too so you'll find very few childminders with this qualification.