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

aliwali

Hi, does anyone know if you can use childcare vouchers if you are in receipt of a childcare grant from the NHS due to training as a midwife? Not claiming childcare element of tax credits only NHS childcare grant as you can't do both. Therefore I assume it would not impact tax credits apart from the obvious decrease in income.

Any ideas?
Thanks

dave111

Hi,
If I have a balance of vouchers left in my account is it possible(legal) to sell them to someone else.
ie. can I pay for someone elses childcare with my childcare vouchers.
cheers

hels123_2

dave111 wrote: »

Hi,
If I have a balance of vouchers left in my account is it possible(legal) to sell them to someone else.
ie. can I pay for someone elses childcare with my childcare vouchers.
cheers

Im not sure, but because my hubby only works half the year I 'saved' up vouchers and have a lot in my account to use when he isnt in work..........but now my childminder is folding and will be using the school for after school care, and they dont accept vouchers, Im set to lose alot!!!!!!

Any advice???

aliwali

Hi, I'm a childminder and have set up to use several different vouchers. It is really easy and doesn't cost anything. Perhaps you could ask them if they would be willing to do it, it really doesn't make any difference to them, you would just pay them into the after school bank account. Hope they are willing to be flexible.

rpc

dave111 wrote: »

Hi,
If I have a balance of vouchers left in my account is it possible(legal) to sell them to someone else.
ie. can I pay for someone elses childcare with my childcare vouchers.
cheers

Nope. They can only be used for one of your own children (or one you have PR for).

Mupette

dave111 wrote: »

Hi,
If I have a balance of vouchers left in my account is it possible(legal) to sell them to someone else.
ie. can I pay for someone elses childcare with my childcare vouchers.
cheers

no the vouchers are only for your use with your childcare, you can of course ask if your employer will refund you them, don't forget you will not get back the amount you have, as you need to pay tax and ni on them.

Notjustamum_2

As I am about to return to work (after 15 years raising the family) my husband has applied for the childcare vouchers from his employer to help towards our youngest's breakfast club fees. He has just received an e-mail stating that the scheme is NOT salary sacrifice but salary added so he will be getting around £100 per month in vouchers BUT he is a higher rate taxpayer so will pay 40% tax, more NI contributions and lose a little more of our child benefit (through additional taxation).

His HR department have told him that registered childcare is then tax deductable on his self assessment but I have been told by HMRC that there is no such tax deduction.

Does anyone have any experience of this form of salary added voucher scheme?

tillygirl_2

Can anyone out there help me with a childcare vouchers and SMP query?

I've recived this email as clarification from my employer but am pretty sure it's wrong:

An example;

If your salary is £2,000 per month and the only salary exchange benefit is CCVs and you take, say £200.00 worth your maternity pay will be calculated on the basis of £2000 x 90% rather than £1,800 x 90% and as you get tax relief, employee NI relief and employer NI save.

On our basis - therefore if you get £1800 per month and pay £186.20 before a tax saving of 20% and NI of 12% (making the net cost to you £126.16 per month)

If we take 90% of £1,800 which is £1620, your CCVs have effectively cost you £180.00 before tax.

I definitely consider that you save around £53.84. per month in real terms.

We work this outside the HMRC guidelines because it works to the advantage of our employees.


I only get statutory SMP and the net amount childcare vouchers have been taken from my notional salary in the 2 months i received 90% of pay. They also took it in the third month when my money had dropped to the £135 a week so i was left with £387 after tax but have since agreed that they were wrong to do this.

I'm really struggling to understand the figures and i work in financial services!

rpc

Vouchers cannot be deducted from SMP. However, SMP is based on your post-sacrifice salary.

Vouchers can be deducted from any contractual maternity pay over and above SMP (e.g. if your employer pays 100% instead of 90% for the first 6 weeks then they can deduct down to the 90% level but not below it).

If your employer uses your pre-sacrifice salary to calculate maternity benefits then this is basically a wee bit of contractual maternity pay and can be subject to deductions.

In the example you give, your SMP would be £1620. If they are giving your £1800, they can deduct £180 but no more. You still receive the full amount of vouchers regardless.

tillygirl_2

rpc wrote: »

Vouchers cannot be deducted from SMP. However, SMP is based on your post-sacrifice salary.

Vouchers can be deducted from any contractual maternity pay over and above SMP (e.g. if your employer pays 100% instead of 90% for the first 6 weeks then they can deduct down to the 90% level but not below it).

If your employer uses your pre-sacrifice salary to calculate maternity benefits then this is basically a wee bit of contractual maternity pay and can be subject to deductions.

In the example you give, your SMP would be £1620. If they are giving your £1800, they can deduct £180 but no more. You still receive the full amount of vouchers regardless.

Thank you so much, if they had explained it as well as you then i would have had no queries. They have still calculated it incorrectly as i get full CCV of £243 and they are deducting £226 from it but my notional pay is only £1250 a month!