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

sfc_boy

My firm are looking at setting this scheme up and they have told me that they will almost certainly implement it in some way shape or form, but they are keen to get the process right from day one.

I would appreciate any advice/details from people who have been involved in setting this scheme up on any issues they encountered (if any) along the way and things they would have done differently if they could do it again.

Secondly, I'd be interested in any views from childminders about how they actually redeem the vouchers and any issues they have had with the process - is it best to do it online, are there any difficulties with paper vouchers etc.

many thanks in advance.

adypem

I've just stumbled across this thread, and like many others I am interested in registering for childcare vouchers. I have my own Ltd company and I would llike to offer the vouchers to all employee's (mainly myself).
What is the process in applying for this ? Do I need to contact the revenue ? Or is this something my accountant could look into for me ?

Thanks in advance

VoucherExpert

Hi everyone

For those of you who are receiving working tax credit, it can still be worthwhile to use childcare vouchers. Firstly, if your childcare costs are more than £175 per week for 1 child or £300 a week for 2 or more children, then you can always use childcare vouchers to pay any excess over these amounts without affecting your tax credits. Secondly, tax credits depend on your individual circumstances, so it's always worth checking how childcare vouchers could affect you. The Inland Revenue has launched a new calculator at http://www.hmrc.gov.uk/calcs/ccin.htm which gives you a definitive answer based on your own circumstances.

I'd recommend strongly recommend KiddiVouchers - they only charge 1.5% but they still provide a completely brilliant service. They also donate to children's charities and it's very easy for any employer to switch to using KiddiVouchers - they will definitely save money by doing this and they'll also be supporting charities!

VoucherExpert

adypem wrote: »

I've just stumbled across this thread, and like many others I am interested in registering for childcare vouchers. I have my own Ltd company and I would llike to offer the vouchers to all employee's (mainly myself).
What is the process in applying for this ? Do I need to contact the revenue ? Or is this something my accountant could look into for me ?

Thanks in advance

If you just employ yourself or other family members, then the easiest type of childcare voucher scheme to set up is called an 'Addition to salary' scheme. With this type of scheme, your company pays you the vouchers on top of your usual pay. That means you don't need to worry about your pay falling below minimum wage, and you also don't need Inland Revenue approval. Of course, you can go for the conventional Salary Sacrifice scheme instead if you want, but then you might need to pay yourself more so that your salary after childcare vouchers stays above minimum wage.

KiddiVouchers has an information leaflet for small businesses at http://www.kiddivouchers.com/infoemployers.php

smiley1978

I would really like some help/advice. I am soon new to be mum and am finding it a minefield trying to understand the voucher system, working tax credit, chid credits etc.

Can anyone please help me and make this feel a lot easier for me. I dont know where to begin or anything!!

Any help/advice much apprecaited:o

dondo

Right- apologies for being thick but hope someone can help answer my query

My work offer childcare vouchers through childcare vouchers (run by Accor) and daughter is due to start nursery next month- can I apply for the vouchers now or do I need to wait until she has started? It's just on the form it states I have to detail child care we currently employ (which at present is my wife until she goes back to work next month)

Any help appreciated

Jus_H

dondo wrote: »

Right- apologies for being thick but hope someone can help answer my query

My work offer childcare vouchers through childcare vouchers (run by Accor) and daughter is due to start nursery next month- can I apply for the vouchers now or do I need to wait until she has started? It's just on the form it states I have to detail child care we currently employ (which at present is my wife until she goes back to work next month)

Any help appreciated

Hi Dondo,

It would be possible to start taking the vouchers now, however you must provide details of the childcare setting you have chosen to use. [Need help finding childcare - see childcarelink for info in your area] Considering this further though, chances are you need to give about a months notice to start taking the vouchers anyway, to give your company and accor time to set up the salary sacrifice. so get your application in quick.

Don't forget both parents are entitled to receive childcare vouchers - does your wifes employer offer them (even if different supplier)??

Hope this helps


Jus - Impartial Expert Advice of Childcare Funding

Jus_H

smiley1978 wrote: »

I would really like some help/advice. I am soon new to be mum and am finding it a minefield trying to understand the voucher system, working tax credit, chid credits etc.

Can anyone please help me and make this feel a lot easier for me. I dont know where to begin or anything!!

Any help/advice much apprecaited:o

Hi Smiley1978

:eek: It certainly can be a minefield!! ok, here goes...

Child Tax Credit - Available for most families - usually about £10 per week per child, dependant on circumstances

Working Tax Credit (WTC) - Idea is to top up low earning families to make ensure returning to work is worth while (need to work min of 16 hrs per week). This is means tested, how much you get depends on your circumstances.

Childcare Element of WTC - to support parents back into work by supporting with childcare costs. Can pay upto 80% of your childcare costs (up to a limit of £175 for one child). Again, this is means tested, how much you get, if anything will depend on your circumstances - Generally speaking a 2 parent family on an average wage will not get this support.

For Tax Credits please use HM Revenue & Customs calcualtor at http://www.taxcredits.inlandrevenue.gov.uk/Qualify/DIQHousehold.aspx

Childcare vouchers - This is a method of saving money on your childcare costs, specifically if you do not qualify for the childcare element of the WTC. They are not means tested. Each parent can exchange up to £55 per week (£243 per month) of their wage into childcare vouchers to use for registered or approved childcare - You do not pay Income Tax or National Insurance on the amount exchanged. This means for one parent exchanging the maximum amount - a saving of £915 per year (standard rate tax payer).

Hope this helps as a starting point. I know it is a lot to take in, please visit http://www.childcarelink.gov.uk/index.asp
or call 0800 2 346346for details of your local children's information service who can offer you free, impartial information, advice and guidcance on child and family issues including details of all local childcare provision.

p.s good luck with the new baby x

Jus - Impartial Expert Advice on Childcare Funding

Mummycat_3

Hi, does anyone know if it is possible just to use vouchers for childcare during the school holidays?

Jus_H

Mummycat wrote: »

Hi, does anyone know if it is possible just to use vouchers for childcare during the school holidays?

Hi Mummycat,

Yes you can use childcare vouchers for holiday care.

You can use the vouchers for any registered or approved childcare establishment. However you can not just take the vouchers on the months your children are not in school. You will need to calculate your annual cost of childcare and pro rata monthly.

Regards


Jus Impartial Expert Advice on Childcare Funding