any accountants out there?? self employment and childcare vouchers.........

[dipsymummy]

Are we entitled to childcare vouchers if self employed? Not sure if I have my facts straight but was told that I can pay myself in childcare vouchers.
wondered if anyone could enlighten me?

[alibubbles]

Yes, you can set up your own scheme. A parent I interviewed for a childcare place with me did just that. It took him about a couple of hours with paper work etc, but talk to the tax people, they were very helpful.

I am trying to encourage a couple of the other self employed parents to do it, as childcare is so expensive, I am happy to take vouchers to help parents.

[dipsymummy]

Thankyou! That is so reassuring-will try and sort it out tomorrow.
wonder if I can backdate it?

[alibubbles]

I dug around on the internet last night for a parent and found this information - hope it helps.

If you work for yourself through a limited company then you can set up a childcare voucher scheme. You can either pay yourself vouchers in addition to any salary you're drawing (even if you aren't drawing any!) or, if you pay yourself enough, you can have vouchers through salary sacrifice.

What?s the difference between a "Salary Sacrifice" scheme
and an ?Addition to Salary" scheme?

In a ?Salary Sacrifice? scheme, employees agree to reduce their existing salary in exchange for receiving childcare vouchers. The employer and employee enter into a Salary Sacrifice Agreement and the employer then amends the payroll to reflect the change in salary. Salary Sacrifice schemes need to be approved by the Inland Revenue.

In an ?Addition to Salary? scheme, employees receive childcare vouchers on top of their salary. The vouchers are still tax-freeand NI-free but, unlike Salary Sacrifice schemes, there is no need to seek Inland Revenue approval. As long as the vouchers are kept within the prescribed limits (£55 a week or £243 a month), they do not have to be declared on P11D forms.

For owners of small businesses who are able to amend their salary as they wish, Salary Sacrifice schemes and Addition to Salary schemes can provide identical savings.