Ex Employer still paying Childcare Vouchers

thefair1973

I was made redundant back in May and finally got all my expenses etc reimbursed in mid-July. I noticed that they had paid me Childcare vouchers in July (the usual £243) but assumed it was a final payment they owed me. However, I've just noticed they paid me another £243 last week.

I just need clarification on my position here. They're not paying me a salary so the vouchers aren't being deducted from anywhere and I'm not sure you can refund them. Can they request them back and if so, how? Also, where do I stand from a tax perspective? I'm also being paid the new (rediculously low) max of £124 by my new employer.

ktothema

Someone popped up on here a while back seemingly not noticing that their old employer had been paying vouchers for almost a year. The company caught up and demanded the money back. I'd suggest you let your old company know, and keep money aside/in the account for repayment.

Judith_W

If they are going into an online account, they will probably just ask for them back from the voucher company and they will be transferred back. They are not your funds, just allocated to you and it is against HMRC to be paid them from more than 1 employer. If you have spent them, they could take you to court for the value.

mymemory

This happened to me when I left the DWP back in January. My nursery told me they had received the money after I'd left in Feb, so I told them just to hang onto it, as I thought they would catch on eventually.

I got a letter only a couple of weeks ago asking for the money back. In relation to tax and NI, the DWP did not ask me for £243 back or the nursery, but asked me for the amount that was sacrificed i.e £243 minus tax and NI, so about £186.

The letter I got explained, that ss there was no money in the payroll (as i'd left), it went into a negative amount on their system, but the negative amount was the £243 minus tax and NI, so what went negative was just £186 - I exect there's will be a similar system.

I guess you have 2 choices - contact them and ask them to invoice you the amount you owe them (i.e after tax and NI) and keep the vouchers. Or contact them and offer to return the vouchers.

The former is better as you will save on the tax and NI.

In relation to how you stand legally - you do owe them the money, but as it is there mistake - I offered to pay it back £20 a month, which they had to accept, as it was a viable solution to the issue, and legally they would find it extremely difficult to decline my offer of repayment.

Hope that helps!

dory10

Hi,

I was just wondering...if you have £ in a childcare voucher account and you dont spend the vouchers before your child reaches 16. What happens to that childcare voucher amount? The money has obviously been taken out of your wages before tax etc....do you get the amount refunded minus tax or what happens to it?

Thx for any help with this.

dseventy

thefair1973 wrote: »

I just need clarification on my position here. .

Really?

Ok

You need to ring your last employer and tell them there has been a mistake and they are still paying childcare vouchers.

Who predicts a "Can they do this?" or "Where do I stand" type post when the employer spots their mistake?

D70