Loophole in Childcare Voucher Scheme

CIS

This looks like the rule that closes the 'loophole' re childcare vouchers

http://www.hmrc.gov.uk/manuals/eimanual/EIM22030.htm

EIM22030 - Benefits: exemptions: childcare and childcare vouchers: rules from 6 April 2005: meaning of “care” and “qualifying childcare

Childcare that does not satisfy the conditions

Childcare does not satisfy the conditions for the exemptions if it is:

provided by the employee’s partner. (“Partner” means one of a married or unmarried couple and includes civil partners.)
provided in the child’s own home by a relative of the child. (“Relative” means a parent, grandparent, aunt or uncle, brother or sister (whether by blood, half-blood, marriage or affinity), and includes step-parents.)
provided in the home of the person who has parental responsibility for the child by a relative of the child (“relative” as defined above).

sarahb

Spendless wrote: »

I actually don't know the answer for childcare vouchers but if you are claiming the childcare element of tax credits and paying a grandparent who is also a registered childminder then the grandparent has to ALSO be looking after one un-related child.

ETA - I found this info that confirms what I'm saying about childcare element of tax credits
http://www.litrg.org.uk/news/latest.cfm?id=235

I think either the inspector was confusing the rules with the cctc system or s/he
was correct but in that case they should have been able to explain why. I suggest you contact your voucher company for clarification.

Thanks for that - it made very interesting reading as I was claiming WTC with childcare costs until October 2005 and had no idea whatsoever that anything was changing in December 2005 !

The inspection I mentioned happened during 2006 and it looks likely the inspector assumed I was receiving the childcare element of WTC. I'm fairly certain my current situation is ok but will be doing a bit more research just to make sure - I'm just a little concerned now how long it will be before the rules re eligible childcare providers for vouchers are changed to exclude grandparents too...

Spendless

sarahb wrote: »

The inspection I mentioned happened during 2006 and it looks likely the inspector assumed I was receiving the childcare element of WTC. I'm fairly certain my current situation is ok but will be doing a bit more research just to make sure - I'm just a little concerned now how long it will be before the rules re eligible childcare providers for vouchers are changed to exclude grandparents too...

It looks the same rules are already in. The inspector should have known though!


http://www.city.ac.uk/hr/childcare_voucher_scheme/childcare_voucher_scheme.html