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

Make-it-3

The maximum amount of childcare vouchers you can pay yourself as a high rate taxpayer is £124 per month.

As a company director you will be declaring your dividends on your self-assessment therefore this is what counts as your annual income.

So the answer is that the same rules apply to childcare vouchers as child benefit.

If you prefer not to accept the answers from a forum why not contact HMRC.

mrsljt

Thanks for the reply Sue and sorry it took me so long to respond - I couldn't work out how to find the post!
Was thinking about offering to sort the paperwork etc for her. I'm surprised it's not more of an issue for local parents.
Cheers again

Savvy_Sue wrote: »

Depending on how much choice there is locally, it could be completely straightforward. "You've decided not to take childcare vouchers and not to offer the free 15 hours per week. I've decided to send my child elsewhere."

Alternatively, if it's a small playgroup with a voluntary committee, offer to do the necessary work. Because I can well believe that it is a significant amount of paperwork and potential hassle.

eljapo4

Hi my wife is currently in the process of becoming a registered childminder, hoping to be signed of by October. I'm wondering if anyone can help clarify this for me:
OH already has 1 person looking for her daughter to be minded atm, but this person gets help paying for her childcare costs (not sure if its childcare vouchers she uses or additional tax credits?). With my OH not being signed off as registered yet - can this other ladies payments be backdated if my OH was to start caring for this little lady? We live in NI if that makes any difference.

susancs

eljapo4 wrote: »

Hi my wife is currently in the process of becoming a registered childminder, hoping to be signed of by October. I'm wondering if anyone can help clarify this for me:
OH already has 1 person looking for her daughter to be minded atm, but this person gets help paying for her childcare costs (not sure if its childcare vouchers she uses or additional tax credits?). With my OH not being signed off as registered yet - can this other ladies payments be backdated if my OH was to start caring for this little lady? We live in NI if that makes any difference.

As it is only registered childcare that would be eligible for any tax credits etc I would not expect that any unregistered childcare would be included. The law states you have to registered to provide more than two hours childcare per day for money so I would not recommend your wife working outside of legal requirments and also she would not have valid public liability insurance to cover her.

speck81

My husband works in the NHS and has just changed jobs, moving from one LHB (trust) to another. He has been getting childcare vouchers for years as a higher rate tax payer, but now that he has changed jobs he has been told he will only be able to claim the lower amount (ie as per the new rules). The vouchers will come from the same provider, but it will be a new account and they have said it cannot be continued as the same account to allow him to keep claiming the higher amount. Surely this isn't fair? Any ideas? He says they were apologetic (edendred) but said there was nothing they could do.

rpc

That sounds about right - moving employer loses you any grandfather rights. He is a new start as far as the new employer is concerned and so the new start rules apply.

There are exceptions where TUPE applies, but not if you quit and restart.

onlyroz

Yes, if you change employer then you need a new account with the childcare voucher provider, and you will no longer be able to claim the higher amount if you are a higher-rate tax payer.

claralou

My daughter is 3 this month; and I've been claiming childcare vouchers (full allowance) since she was 1 and started in childcare 2 days a week.
I'm pregnant with #2 and will be going off on maternity leave in Feb. My maternity pay will be calculated based on my salary in week 25 of pregnancy (in 7 weeks time) so I need to decide whether to stay in scheme or opt out in the next couple of weeks.
Husband hadn't claimed vouchers til now as he was freelance, but is now employed with company who do offer vouchers, so also trying to decide whether to opt into scheme or not.
Whilst I'm on maternity leave with #2, I'll likely be putting #1 in preschool mornings only, which for the most part will be covered by the free gov't 15h/week. When #2 hits 1y, I'll prob go back to work p/t so we would use vouchers again then.
Can't find any info on childcare voucher scheme website (kidsunlimited) re expiry date of their vouchers, but obviously need to check this to work out whether accruing vouchers makes sense or would be a waste.
But feel like I need some sort of calculator to help us work out what we're better off doing - anyone know of one, or know how to work out what figures to bash out to make it all simpler in my (pregnant and therefore slightly decompensated!!;)) brain?
Thanks in advance.

claralou

jem1276 wrote: »

Also I read on a forum that if your childcare is less than £175 per week it is not worth using vouchers and ours will be. Does anyone know if this is correct?

Did you ever get a reply to this or find other info to help you work out your own calculations? I may be in this position and am trying to work out whether it's worth staying in the scheme or opting out. What forum did you see this on? Thanks.

claralou

Judith_W wrote: »

ps little known side effect of the sex discrimination amendment in Oct 09 I think it was means that if you are receiving CCVs before you go on mat leave the company should continue to provide these during mat leave, and as they cannot take a deduction from SMP they give it to you free.

If you get a return to work bonus or enhanced SMP they can take it from that though...

Am I understanding this right, that if my maternity pay (NHS) is as follows:
8 weeks full pay, inc of SMP
18 weeks half pay plus basic SMP
13 weeks SMP only
.. but I take 52 weeks maternity leave
The remaining 13 weeks would be unpaid, but I could still claim (free) vouchers?

What's people's experience? Do employers generally do this since the legislation, or is it one of those things that you would have to go through some arduous process to claim your right to?