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Childcare voucher payments - how to furlough?

(6 Posts)
PavoReal Thu 30-Apr-20 12:40:56

Sorry, another nanny question. I have googled this to death and still can't find the answer. I have a nanny 2 days a week for after school pick ups and I pay her with childcare vouchers so 243 a month. Although I'm still working I'm not using her as her other family are NHS doctors and I feel the risk is too great if she came into my home.

This month I was just going to send her some cash but I can't carry this on indefinitely - when she is working for me, in those hours my hourly wage goes to below minimum wage if that makes any sense. I'm a single parent with no financial support from their Dad, and there is still a danger that I could get furloughed myself.

I want to do the right thing for her but I have no idea what that is! I don't want to make her redundant if I can help it. As far as I can work out, I don't pay her via PAYE so I can't claim? Childcare vouchers are taken out of my salary and then passed to another company (Salary Extras) who then pays my nanny. Salary Extras have told me I need to investigate this myself. Anyone got any ideas?

OP’s posts: |
pocketem Thu 30-Apr-20 13:33:55

She's either self employed or running her own business. You can't furlough her as you are not her employer, you are just contracting her services

Myfriendanxiety Thu 30-Apr-20 13:38:30

You don’t employ her so you can’t furlough her. You can however choose to stop paying her by giving notice on her services.

I use a childminder- I am still paying her with my childcare vouchers but am stopping from next month as she has said she won’t be having my children back until a vaccine is introduced due to seriously ill family members.

PavoReal Thu 30-Apr-20 13:58:53

OK thank you both. I think I understand, on top of that I guess she doesn't pay tax on the childcare vouchers I give her as well. I feel awful!

OP’s posts: |
Whattodowhattodooo Thu 30-Apr-20 14:18:06

@PavoReal

If your gross pay dips below a certain amount will your employer continue to pay for the vouchers on your behalf?

Ive been on mat leave and when my wages really dropped I noticed that childcare sacrifice wasn't included on my deductions. I still wanted to build them up whilst I was on leave so that I had a nice sum for when I did go back. I called payroll and they said that when my basic pay drops to a certain amount they pay them for me... Couldnt believe it!!

PavoReal Thu 30-Apr-20 18:02:22

@Whattodowhattodooo

Blimey that’s amazing. That is worth an investigation. Thank you!

OP’s posts: |

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