Busy Bee (childcare) vouchers whilst on maternity leave

Suzehyman

Am after some help/advice regarding the above. I currently receive the busy bee childcare vouchers for my eldest daughter however I am now on maternity leave with my son. I was told by a friend that if I carry on receiving the busy bee vouchers whilst on SMP I can build these up as they don't expire and then use them when my son goes the nursery in September. I have had this confirmed by busy bees that they don't expire! However I also receive as well as my SMP a car allowance which is an extra benefit over and above my normal pay. My problem is that the busy bee vouchers are being deducted from the car allowance. I'm sure this shouldn't happen but my employers won't except this! Has anyone had the same problem or can advise that this shouldn't be happening. Would like to go back to my employer with a legal paragraph stating it shouldn't be deducted from a benefit but am struggling to find such thing!

[Deleted User]

If you were receiving these vouchers via a salary sacrifice scheme then no they can't, you have already paid for them by sacrificing part of your salary, your SMP is lower as a result of sacrificed salary. Can you just confirm you were receiving them as part of salary sacrifice? Then I will try and find some links to guidance?

Suzehyman

Hi Joanne

Yes I receive the busy bees as part of a salary sacrifice scheme that my employers run. I would be very grateful of any advice. My friend who told me about it works in the same sector and receives the vouchers in the same way as I do, she also has a car allowance. Not sure why I'm getting these deducted from my car allowance as this is a benefit and not part of my salary. This is the reply from my employer "I am still awaiting a note from the legal people but I have check the legislation carefully and it states that yes you are correct in that you cannot deduct the cost of the vouchers from SMP however you are paid SMP and a car allowance, the car allowance is not a benefit it is a cash allowance and it is only non- cash benefits which need to be maintained. A car allowance is specifically mentioned in the legislation and it states need not be continued during OML or AML. We are therefore entitled to deduct the cost of the vouchers from this as long as you do not receive less than SMP"

It would appear the misunderstanding is the car allowance this is paid in cash and therefore is not a non cash benefit"

Icequeen99

Suzehyman wrote: »

Hi Joanne

Yes I receive the busy bees as part of a salary sacrifice scheme that my employers run. I would be very grateful of any advice. My friend who told me about it works in the same sector and receives the vouchers in the same way as I do, she also has a car allowance. Not sure why I'm getting these deducted from my car allowance as this is a benefit and not part of my salary. This is the reply from my employer "I am still awaiting a note from the legal people but I have check the legislation carefully and it states that yes you are correct in that you cannot deduct the cost of the vouchers from SMP however you are paid SMP and a car allowance, the car allowance is not a benefit it is a cash allowance and it is only non- cash benefits which need to be maintained. A car allowance is specifically mentioned in the legislation and it states need not be continued during OML or AML. We are therefore entitled to deduct the cost of the vouchers from this as long as you do not receive less than SMP"

It would appear the misunderstanding is the car allowance this is paid in cash and therefore is not a non cash benefit"

Your employer would appear to be correct based on HMRC guidance. http://www.hmrc.gov.uk/employers/sml-salary-sacrifice.pdf

Page 13 (or it looks like 13, not helpful they haven't got page numbers) clearly states that a cash car allowance is not a non-cash benefit and therefore the employer is not required to maintain it throughout the period of OML or AML.

Are there any exclusions?
 Wages or salary - There is no statutory obligation for employers to
continue during OML or AML to provide any monetary wages or salary
previously payable (however employers may continue to pay them
voluntarily or under the terms of the employment contract - eg
Occupational Maternity Pay).

 Cash benefits - Employers need not continue during OML or AML to
provide contractual cash benefits such as:
o Cash allowances (eg housing allowance, car allowance, fuel
allowance, or first aid allowance).

Suzehyman

Hi Joanne, many thanks for this information, not sure why my friend is getting it but it's now clear. You've been most helpful x

Icequeen99

Suzehyman wrote: »

Hi Joanne, many thanks for this information, not sure why my friend is getting it but it's now clear. You've been most helpful x

I'm IQ not Joanne :rotfl:

[Deleted User]

I think there are 2 issues here and it hasn't been administered in the best way.
Firstly salary sacrifice should not really be looked at as a deduction, it has always been explained to me as imagine a piece of ribbon is your salary, you cut part of that ribbon off and swap it for the benefit and what remains is your salary, and hours, unpaid sickness/leave, SMP entitlement etc based on this new salary. For some of my clients I only show the post sacrifice salary, some however have the notional salary shown on the payslip with a deduction.

Now as IQ explained as your Car User Allowance is a cash benefit your employer is not under obligation to continue to pay it. However it might be worth challenging. I had a woman on payroll a few years ago who did and she argued that she was paying hp on a car that was specifically bought for her job and was a necessity of her job. She could not simply hand the car back without being penalised and in the end they continued to pay her the allowance whilst she was on leave.