Childcare vouchers and SMP

[reddaisy]

I have read conflicting info on whether I still get childcare vouchers while on SMP.

Can someone explain to me how it works please? What happens if I don't go back to work and take extended maternity leave on no pay etc?

[Grevling]

Yes you do. Its a benefit of your employment and they can't stop your benefits unless its a business need (i.e. works van etc).

[befuzzled]

I seem to be, didn't lay time but the rules seems to have changed

[reddaisy]

So when I am getting SMP will the childcare voucher be in addition to that? Or will the voucher be deducted out of the SMP?

[flowery]

Deductions for vouchers can't be made out of SMP so you will get the vouchers throughout your mat leave and SMP will remain intact. if you get anything over and above SMP they can deduct from that.

[reddaisy]

I don't so that's great. Thanks for your help everyone.

[lateatwork]

i am sorry but doesnt it depend if you are being given the childcare vouchers as a benefit or whether you are paying for them yourself through salary sacrifice?

If its salary sacrifice then you dont get them unless you want to pay for them (in a sim way to topping up your pension...)
But if they are a benefit you still get them (in a sim way to company pension contributions..)

that was my understanding but I am not in HR...

[reddaisy]

Nooo, don't tell me that lateatwork! It is as a salary sacrifice.

[lateatwork]

reddaisy, i stand corrected... just found this... dated 2009...

www.personneltoday.com/articles/2009/06/10/51018/childcare-vouchers-and-maternity-leave.html

which is bloody brilliant as its something else i can claim from my employer.

[reddaisy]

Thanks for the link. I would rather tell our HR department what I am entitled to rather than ask them!

[lateatwork]

i am just trying to work out whether its better to stop paying for childcare voucher for the 8 week period that they use to calculate SMP... am now reading an HMRC document that is causing my head to hurt...

[reddaisy]

I know! Some people opt out because it affects their tax credits. I am just doing our renewal form for tax credits so I guess I will see how much we are likely to get this year first and then see. It is all so complicated! It would mean I could afford to keep DD at nursery which would be good for everyone.

[lateatwork]

we dont get tax credits so dont have to worry about them (cant even begin to think how complicated that would be!!). I think opting out would increase the gross earnings over that time and thus SMP would be greater? but ugh i dont know. It is really complicated.

[mranchovy]

It is unlikely that you will be able to opt out for the critical 8 weeks and then opt back in again. So you might increase your SMP by 90% of the weekly voucher value for six weeks, but lose out on 100% of the weekly voucher value for the rest of your maternity leave.

Most schemes allow you to make one change in each 12 month period, partly to avoid unnecessary admin costs but also to prevent attempts to game the system.