Can’t get new company to charge me for nursery vouchers

magicdogsbrain

Sorry if this is not the correct place - I could not find a more appropriate place.

My company was taken over in August of last year. Before that I had a salary sacrifice in place for the full amount (243) in nursery vouchers.

My company was taken over by a small US company and the financial controller does not understand properly about these vouchers (and they are a low priority). They are in the process of training a European financial controller so eventually I will have to pay.

First of all I had trouble actually getting the vouchers. Then I noticed after a couple of months that I was not being charged at all for them at all. I have written numerous emails to the controller explaining salary sacrifice and asking when he is going to start charging me for them. He said it will happen but gave no indication of when.

My question is – do you think the last 10 months vouchers were free – or will I have to pay them back?

surreysaver

magicdogsbrain wrote: »

Sorry if this is not the correct place - I could not find a more appropriate place.

My company was taken over in August of last year. Before that I had a salary sacrifice in place for the full amount (243) in nursery vouchers.

My company was taken over by a small US company and the financial controller does not understand properly about these vouchers (and they are a low priority). They are in the process of training a European financial controller so eventually I will have to pay.

First of all I had trouble actually getting the vouchers. Then I noticed after a couple of months that I was not being charged at all for them at all. I have written numerous emails to the controller explaining salary sacrifice and asking when he is going to start charging me for them. He said it will happen but gave no indication of when.

My question is – do you think the last 10 months vouchers were free – or will I have to pay them back?

They really are complicated. It was a pain strting mine up - difficult to get information about them and no-one seemed to know how they worked (the voucher company or my payroll). Once they were set up, no more problems. It would be so much easier if they just upped your tax code, IMO. I don't know how it will work in your case - as it will straddle two different tax years, so I presume if you've had your P60 already, can they alter that? They might have to write the loss off! You can only have a maximum each year, so they cannot take them off this year's pay for last year, it is against inland revenue rules. But I might be wrong.

magicdogsbrain

surreysaver wrote: »

They really are complicated. It was a pain strting mine up - difficult to get information about them and no-one seemed to know how they worked (the voucher company or my payroll). Once they were set up, no more problems. It would be so much easier if they just upped your tax code, IMO. I don't know how it will work in your case - as it will straddle two different tax years, so I presume if you've had your P60 already, can they alter that? They might have to write the loss off! You can only have a maximum each year, so they cannot take them off this year's pay for last year, it is against inland revenue rules. But I might be wrong.

Presumably, the P60 is not affected. My P60 just contains my income – whereas my previous P60 contained my salary sacrificed income. Since the salary sacrifice simply reduces your gross salary – not salary sacrificing simply does not reduce your gross salary (if you know what I mean J). My situation now is like I am earning £243 more per month and have salary scarified down to my current level.

Are there any tax experts out there that know for sure that there are no tax implications?

Does anyone out their get their nursery vouchers as a bonus (i.e. no salary sacrifice)?

RabbitMad

point out to your company they save the NI on your salary sacrifice so really in there interests to get it sorted out again.

pearsona

You might want to mention TUPE to your current employer, as any previous benefits ie salary sacrifice with Childcare vouchers have to be honored. You might also find it helpful to ask the childcare voucher provide ie accor to have a word with your employer to set it back up.

Hope this helps!

http://www.childcarevouchers.co.uk

If you need any further help, please don't hesitate to contact me.

Regards
Allan Pearson
http://www.payepeople.co.uk