Childcare vouchers - an employer's question

Savvy_Sue

Confused_on_childcare wrote: »

Hi I have read somewhere that the cost of childcare can simply be reimbursed to the employee through his/her wages.

I am a high rate taxpayer receiving vouchers at the maximum of £222 per month sal sacrifice. We then have to make up the difference in cash each month to the childminder. Can my husband, (director of own one man ltd company) use salary sacrifice for the balance each month, approx £60. We have one child at nursery aged 18 months. Can this be deducted each month in arrears from salary pre tax/ni and paid over to childminder. (husband is basic rate tax payer. Confused is not the word...please help.

I'd strongly suggest you get advice from the accountant on this one. And if you don't have one, I'd strongly suggest that you need one!

pjclar02

Confused_on_childcare wrote: »

Hi I have read somewhere that the cost of childcare can simply be reimbursed to the employee through his/her wages.

I am a high rate taxpayer receiving vouchers at the maximum of £222 per month sal sacrifice. We then have to make up the difference in cash each month to the childminder. Can my husband, (director of own one man ltd company) use salary sacrifice for the balance each month, approx £60. We have one child at nursery aged 18 months. Can this be deducted each month in arrears from salary pre tax/ni and paid over to childminder. (husband is basic rate tax payer. Confused is not the word...please help.

Hello there

How much does your husband receive as a salary through his company?

SuzieSue

We use Fideliti:

https://www.fideliti.co.uk/default.aspx

They are very good as they do everything - all you have to do is ensure that cost of the vouchers are deducted from the employee's salary and pay their invoice. They charge 5% of the value of the vouchers so less than our NI saving and we only have 2 employees on the scheme.