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and claims £90 a month childcare allowance.

Just come back from seeing some friends. Their landlord is about to increase their rent by a third and they are already on the bones of their arse and work like hell to pay the rent and bills.

Can he claim childcare allowance on that salary? Really? Please tell me NO!

You mean child benefit?
Up until January, It was a universal benefit
But now it is income related, so he should have given it up

I doubt he can claim anything - we earn way less than that and the only thing we get apart from CB is childcare vouchers, which save you the tax you would pay on them. It works out at about £90 or so for both of us (the maximum one person can claim is £240ish in vouchers so about £50 in tax at 20%)

I was thinking childcare vouchers

www.moneysavingexpert.com/family/childcare-vouchers#nut

This is childcare vouchers. The company pays it.

No he buys them, it will come off his wages pre tax.

It's not a benefit
It's something offered by companies to help with childcare

I mean, it's not a govt benefit
It's a benefit of his employment

No, the company doesn't pay it. His salary is reduced by £240 pounds, then he is given £240 pounds in vouchers. He then doesn't have to pay tax on the £240 because it was paid as vouchers rather than salary.

It is a universal tax benefit for all working parents (whose company offers the scheme). Given that child benefit has now stopped (it has to be repaid) for higher earners, it is the only tax break he gets to help pay the Childcare tht means he can work.
S

What does this have to do with you or your friend?

You also can't claim it alongside tax credits.

If it is for child care he won't actually get the money nor will the company pay him the money. Up to 243ish can be taken out of your pay before tax and ni and used towards childcare costs. Hence the £90, as that would be approx the tax and ni he would be liable for on the 243.

Am really not sure why this makes him entitled tbo.

The company don't pay it. It simply means he takes out the childcare vouchers (up to a max of £240ish per month) before tax. Everyone with kids is entitled to this. The company is better off as they also don't pay NI contributions on that amount. If he were ever off sick, paternity leave etc then his pay would be worked out as if he didn't earn that £240 and he would be worse off. I really feel for your friends, but I bet this guy has worked incredibly hard to get where he is. He will pay something in the region of £50k tax per year, contributing massively to the benefits payments of those who are in a less fortunate position than him.

Also, if he enrolled into the scheme after the changes in 2011, he will only be able to claim £124 (or so) tax free.

he'd be daft not to......its just a tax break....he's not getting 90 quid. Sorry to hear about your friend but thhats nowt to do with your boss

I just reread the op and second badgers. Really not sure what your boss has to do with you friend or how much rent they pay their landlord.

It's a tax break, not a benefit.

Ermm - his wife is a SAHM. This is why I am confused.

Should have said that earlier. Sorry.

Well it seems they pay for childcare, as they are allowed to, despite his wife's employment status.
Do you also disagree with company cars?

It doesn't matter how much he earns. Everyone working with a company in the child care scheme can claim the tax break. It isn't a state benefit its a tax relief which I think we all bloody deserve. It's only 90 quid a month off his tax amount but he still pays a higher rate tax on his earnings therefore contributing highly to the state benefits system. Not sure how it affects your friend though! Good for him having a decent job with decent pay and allowing his wife to stay at home. She may have a little job at home that's none of anyone's business and pay for childcare ie after school clubs etc. might also have a live in nanny ha ha

I really don't see why it's 'entitled' or anything to do with your friend.

If someone has a good job and a perk of it is say, gym membership, you wouldn't think it was 'entitled' if they used it.

Childcare vouchers/salary sacrifice is open to anyone and it's a job perk and not like a benefit.

So what his wife is a SAHM, that doesn't mean she has to do all the childcare when they can afford for her not to it's up to them what works for their family. Maybe she has awful PND or MH issues and needs the break. Maybe she just likes to file her nails in peace. Either way it's nothing at all to do with you and you're wrong to judge.

I am questioning everything at the moment as the company has gone tits up and this particular director also charged for family holidays as 'business trips' and 800 quid a month on taxis and £2400 a month on 'entertaining'.

The director's salaries and fees and 'expenses have put 180 people out of work.

He is one of NINE directors. Bloody gravy train or what?

I despair I really do......................we have lost a massive contract due to overspending and the overspending went on directors who we saw once every three weeks.

End of thread for me. I could cry. I am the lowest paid member of staff and one of the longest serving...................

I think you need to be careful what you post here, divulging those kind of identifiable details (how do you know them? Are you in HR? A secretary?) could get you into a lot of trouble

So he's claiming childcare vouchers legitimately, and his wife is a SAHM. I don't see why this is an issue. Unless you think children of stay at home mothers (or fathers) should not use childcare at all, on principle.

So the company has gone into liquidation/administration?

if so, then the liquidator/administrator will be all over the books.

They will also advise you on how to claim any redundnacy payments etc.