Maternity leave and childcare vouchers/pension

System

ISTR previous threads where people ramp up their chidcare voucher purchase to the maximum before they go onto SMP meaning that the employer is stuck with providing them at the max rate throughout the SMP period at no cost to the mother-to-be

Takeaway_Addict

Which is why on the whole it failed miserably as a scheme as it was open to abuse (all be it legal)

bossymoo

In my place of work the scheme outlined that vouchers could continue to be offered but the cost would be recouped from pay following return to work. Not sure how legal that was.

OP if you qualify for child tax credits, it may make more sense to check out the childcare part of WTC - rather than use the voucher scheme. There used to be a calculator on MSE to help work out which is better financially for you.

KRDmum

I was still getting my vouchers during 3 maternity leave, it was upto me whether I cancelled them or not, but had icamcelled them, I could still 'buy back' unclaimed vouchers, for as long as it was in the same financial year.

Savvy_Sue

Giggidy wrote: »

No tax calculations have been done for me, HR just believes that SMP is not taxable.

do they do the payroll themselves, or farm it out? They may not know themselves, but if the payroll is done by an external company then they don't need to know: the external company will just do it!

Giggidy wrote: »

With regards to the vouchers, could they say that are not obliged to pay it or is this definitely statutory?

I think the key words are "If you offer a childcare benefit or childcare vouchers to your employees in return for a reduction in their cash pay". So it's worth checking: are you doing this through salary sacrifice, ie they pay you less than they would if you weren't paying for childcare vouchers?

Giggidy

Yes its taken through salary sacrifice, but I thought even though the company technically take it from my pay its still a non-cash benefit and are therefore required to carry this benefit on my behalf?

System

Taken from https://www.gov.uk/guidance/statutory-maternity-pay-employee-circumstances-that-affect-payment

You may normally pay some of your employee’s earnings as a non-cash payment, for example, providing board and lodging or giving them goods or services. However, you must pay any SMP in full. SMP cannot be sacrificed or offset against other benefits, it must be paid in cash.
All non-pay contractual benefits must continue during statutory maternity leave. These may include any childcare vouchers, company car or mobile phone provided to the employee as part of their contract of employment.