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

lite_ruse

AngelOfTheNorth wrote: »

Cheers. Do we know yet if one parent is going to be able to do the old voucher scheme and one the new tax free scheme? Apologies if this is an obvious question.

I don't think you will be able to. I can't post links but if you search "Tax-Free Childcare: Draft Guidance for Comment ") you'll find this paragraph below. Of course, it's just a draft open to consultation at this stage, but it does suggest it won't be an option.

If you or your partner (if you have one) are getting childcare vouchers or directly contracted
childcare where you don’t have to pay tax or National Insurance contributions, you can’t also get Tax-Free Childcare.

Bacho

Hello

My wife and I are both employed and basic rate tax payers. I found out we are better off with the current system than the new one coming into effect in autumn. However, my son wont be starting nursery until my wife goes back to work in October. Is there a way of staying with the old system? Thanks

AngelOfTheNorth

Yes, as far as I know if you're in the current scheme before it closes to new entrants, apparently in August, you can stay with it. But not if you change job. Not sure if you can vary the amounts either.

rpc

Bacho wrote: »

Is there a way of staying with the old system?

Join it before the new one comes in. Your child does not need to be receiving childcare to join - I joined as soon as my first was born and the whole time my wife was on maternity leave I was banking vouchers.

Mupette

you do actually have to have an active account, you need to be receiving vouchers, but if you dont need them yet fine just bank them

Calo43

I am currently on a break with payments using Busy Bees, as i built up a large amount of vouchers and am currently running them down. However, does anyone know if I will be able to start them up again after the change in Autumn as i am still registered to the scheme, or will i need to start paying again now to prevent any issues?

Mupette

Calo43 wrote: »

I am currently on a break with payments using Busy Bees, as i built up a large amount of vouchers and am currently running them down. However, does anyone know if I will be able to start them up again after the change in Autumn as i am still registered to the scheme, or will i need to start paying again now to prevent any issues?

no you will not, you can spend them as they are deemed yours bought and paid for when they are deducted from wages,

I can't stress this enough you need to have vouchers coming in to stay in the scheme

rpc

Mupette wrote: »

I can't stress this enough you need to have vouchers coming in to stay in the scheme

In the case of a break, I don't think it is that clear cut.

You are allowed a break of up to 12 months without breaking your membership of the voucher scheme. What I don't think we have been told yet is how this relates to being able to restart vouchers after the break if the new system is in place.

It will depend on the small print of the arrangements, it would be far better to avoid any doubt and make sure that vouchers are being bought each month.

Mupette

rpc wrote: »

In the case of a break, I don't think it is that clear cut.

You are allowed a break of up to 12 months without breaking your membership of the voucher scheme. What I don't think we have been told yet is how this relates to being able to restart vouchers after the break if the new system is in place.

It will depend on the small print of the arrangements, it would be far better to avoid any doubt and make sure that vouchers are being bought each month.

Quite agree :j

yes that bit was correct, but because of the way the government has imposed rules for the new voucher scheme, they have lain down the law for existing companies, Everything changes when the new voucher company starts, and it will affect everyone using them now. You wont be able to rejoin if on a break at the time, hence why you must restart if you can and just build up the vouchers for later use, school holidays, holiday clubs, even towards a PGL holiday later down the line if needs be, some companies will refund vouchers, not all and its set by the employer NOT the voucher company, no point screaming at the voucher company for a refund if your employer says no. (and the refund is tax and NI deductible as you haven't paid it on purchase)

I work for one, i would suggest every parent check their spam mail if not receiving updates, check company Facebook page or website, email them or call them.

And make sure your personal details are correct on your online accounts, voucher companies cant keep you up to date if you don't keep them up to date if your personal details change.

Goldust

Hi everyone


I'm a little confused - my employer offers the voucher scheme via care-4 and I'm about to sign up but have noticed there is a new scheme coming up.


From what I can see I'm better off with the vouchers. I'm in the £30-£40k bracket in terms of pay so I'm guessing I get Tax and NI savings which would be higher than the 20% the new scheme offers. My partner works part time so doesn't pay any tax anyway and we only need to put around £55 per week in which is the max anyway.


If I decide to put the baby in nursery for extra days once the new scheme starts can I claim the tax relief on anything over the £55 I'm paying into the voucher scheme or is it one or the other?


Sorry if it's not clear I'm a bit confused!