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

GobbledyGook

They can't take the amount from your SMP.

Some work places don't realise it if they've never experienced it before so get onto them and let them know.

Takeaway_Addict

Fiona_T wrote: »

I'm currently on mat leave - I've just gone onto SMP only following 6 months of SMP & OMP.

I signed up to childcare vouchers last month as a little birdie told me they couldn't take payment from my SMP.

I get my pay slip this week and they have taken the amount from my pay!

Can they do this?

Thanks

Hope you're not the only one doing the vouchers because if you are your employer is going to be well annoyed and feel stiffed.

rpc

Fiona_T wrote: »

I'm currently on mat leave - I've just gone onto SMP only following 6 months of SMP & OMP.

I signed up to childcare vouchers last month as a little birdie told me they couldn't take payment from my SMP.

So you have started up childcare vouchers while on maternity leave? Most employers won't let you do that and this may be why they have taken money.

The protection is for the terms you had prior to maternity leave. You are changing your employment terms while on maternity leave so the same protection doesn't necessarily apply.

There may be a loophole that lets them do this if you want to change your employment terms after leave has started. Don't know. If this is allowed (or prohibited) it is deep down in the fine detail of employment law.

The usual scenario where vouchers are being taken prior to employment leave and must be maintained is the one that most people will think of but isn't the one that you are presenting.

rpc

A bit of reading suggests two scenarios:

1 - Starting childcare vouchers during mat leave should work during OMP (as long as no SMP is sacrificed) but then the employer should automatically opt the employee out when SMP kicks in, then opt in again upon return to work. The employer has an entitlement to override your requested amount if there is insufficient salary and that would apply (as OMP is the only salary available).

2 - Start childcare vouchers but not as a salary sacrifice arrangement until after the return to work. No tax relief is being claimed in this case.

To extend your scenario a little further, my wife could have chosen to increase her pension payments to a million billion gazillion pounds while on maternity leave. Should the employer be expected to pay that? If that contribution was made before commencing mat leave then the employer would have to fund it during maternity leave. But the scenario you present would allow an employee to choose to increase their pension contribution while the employer was paying it, then cut it again before the employee has to pay it.

I do not think you are correct to expect "free" vouchers if you only opt-in after mat leave begins. Your employer may not have treated your application correctly though!

CFUS

Hi Does anyone know if you can use your childcare vouchers for educational overnight school trips. e.g. 3 day Cultural trip to Europe.

There is conflicting messages on the web and I am trying to argue my case to the school that we should be able to.

However, It seems to be up to the school and mine is saying no? Can anyone point me in the direction of some info to support my case that I can send to the school?

Thanks

onlyroz

CFUS wrote: »

Hi Does anyone know if you can use your childcare vouchers for educational overnight school trips. e.g. 3 day Cultural trip to Europe.

There is conflicting messages on the web and I am trying to argue my case to the school that we should be able to.

However, It seems to be up to the school and mine is saying no? Can anyone point me in the direction of some info to support my case that I can send to the school?

Thanks

Assuming you are in England, hmrc says the following:

What is registered or approved childcare?

To qualify for the Income Tax and NICs exemptions the childcare must be provided by one of the following.

• A childcare provider approved under the Ministry of Defence accreditation scheme abroad.

In England only

• A person registered under Part 3 of the Childcare Act 2006. This will include persons on the following registers operated by Ofsted

— the Early Years Register

— the general Childcare Register – compulsory part

— the general Childcare Register – voluntary part.

• Schools – care provided by the governing body of a school is approved if it takes place
— outside normal school hours (this means the normal hours of compulsory education adopted by the school as appropriate for the age of the child)

— on school premises, or

— on premises that are covered by the inspection of the whole school activity by Ofsted or the equivalent inspection body for certain independent schools.

• Other care providers – a domiciliary worker or nurse from an agency registered under the Domiciliary Care Agencies Regulations 2002 providing childcare in the child’s home.

There are other sections for Wales and Scotland.

http://www.hmrc.gov.uk/leaflets/ir115.pdf

rpc

For schools, vouchers are only really suitable for breakfast clubs, after school clubs and similar. You call the trip educational, which strongly suggests it would not be eligible.

In any event, all the "rules" tell you is whether it is legally permitted to use tax-exempt childcare vouchers to pay for something. The childcare provider is free to accept or reject vouchers or particular voucher providers.

Luella-14_2

Hi, hoping someone can advise. I'm returning to work after maternity leave in March. My employer wouldn't allow me to join the voucher scheme during my OMP but would I still only be able to get £243 vouchers from my March full pay or am I allowed to up the amount to more as I haven't been getting them throughout 14/15? Essentially is it a monthly limit or an annual one?
Thanks

rpc

Luella-14 wrote: »

Hi, hoping someone can advise. I'm returning to work after maternity leave in March. My employer wouldn't allow me to join the voucher scheme during my OMP but would I still only be able to get £243 vouchers from my March full pay or am I allowed to up the amount to more as I haven't been getting them throughout 14/15? Essentially is it a monthly limit or an annual one?
Thanks

£243 per month or £55 per week. Each month/week is treated seperately, there is no cumulative allowance.

aimex

Hi there


I wonder if anyone can help me. OH works for NHS. I am a SAHM and we have 2 children. DS1 will start playgroup 2 mornings a week from January (will be 2.5) but will qualify for the 15 hours free from next September. So we only have to fund nursery from Jan to July 2015 at a cost of approx. £500. Just wondering if it is still worthwhile (and not a pain in the butt) to apply for vouchers through OH's employer? Is it a long winded process? and is it easily undone Ie can you just apply for the amount you need and that's it? Sorry new to this whole process.


Many thanks