Are Childcare Vouchers refundable?

[youcantlabelme]

I have £200 worth of vouchers left in my 'account' (Imagine Co-operative Childcare).My son has left primary school, and I no longer need child care.

As advised by above company to contact my HR department to obtain the money back I did this and was then informed that it was too bad and they were not able to refund this money back for me.

They advised me to use it up somehow, as they are valid for five years apparantly..wtf.. I no longer need Child Care, and although I guess I did not pay tax on this amount, it is my money that I could sorely do with, esp now..

I just want some advice as to what my options are.

I even thought of making a final payment to the after school club, my son used to go to and then try and claim the money back that way. Daft, I know..

Or have I indeed just lost £200 squiddlies?

[MarjoryMoores]

they are not refundable I'm afraid - could they be used for holiday clubs?

[Paolosgirl]

Nope - not refundable. We've just discovered that we'd overpaid the afterschool club (long story...) but are not entitled to a refund - which is a bugger. They have agreed to bank them, which means I can use them for a holiday club though.

Not wanting to put even more of a dampener on things for you, but I was told that they were only valid for a year. Maybe each childcare voucher provider is different though...?

[youcantlabelme]

Can I ask why they are non refundable.

I mean, didn't it come out of my wages-not like it was a freebie from work or anything. My take home wages were reduced as I was paying into this voucher scheme thing.

Or have I missed something vital here?

[Ceebee74]

I agree that it is money out of your salary but it is money that you did not pay tax on so technically approx 25% of the money is not yours iyswim and the system is not in place to correct that iyswim.

I am certain it would have been in the salary sacrifice agreement with the company that you signed that you could not refund the vouchers.

[Paolosgirl]

It's got something to do with the fact that they are linked to tax [vague emoticon]

DH is the tax expert, but he's out at the moment. He did explain why we don't get a refund, but I switched off after "we don't get a refund". I can ask him when he gets home and get back to you, if no-one else on here knows.

[Sam100]

It's not your company's fault - blame the Inland Revenue. They made it a requirement when they set the voucher scheme up that if you take the vouchers that you cannot exchange them back for cash - to stop any clever tax dodging schemes.

You should be able to carry them forward for holiday clubs but check the expiry with your voucher provider.

[navyeyelasH]

I am a childminder and I have read that you can get a refund (I'm sure) but you can't exchange your vouchers for cash.

If the voucher co gave the money back to your employer and your employer paid that money back to you as they would you normal salary (so you would be taxed) surely that would satisfy any tax concerns?

Who do you do your vouchers through, I will investigate!

A random google finds this on here 2.16 If I do not end up using them, can I have my Childcare vouchers refunded?
Imagine can refund any unused Childcare vouchers, however, HM Revenue and Customs
states that refunds must be paid via the payroll. This means that you will lose the benefit
of the Tax and National Insurance savings on this amount refunded. If you leave the
University and require a refund, you must request the refund at least 1 month prior to your
leave date, to allow your request to be processed.

[MollieO]

navyeyelash when I first read your post I thought you could use childcare vouchers for university .

[youcantlabelme]

Yes, I may have to read up on what I got from HR.

Nothing in the imagine copperative bumph(sp?) does it mention it.

Wonder if I can pass them onto someone else who uses them?

[navyeyelasH]

This from the imagine website...

"Can I withdraw the balance of my voucher account if my childcare requirements cease?

There is no obligation for employers to agree to childcare voucher refunds. Childcare vouchers are a non-cash benefit and HMRC advises that they should only be refunded in exceptional circumstances, at the discretion of the employer. Any refunds authorised by the employer must be made through payroll so that the appropriate tax and NI deductions can be made."

Link here

If your employer is saying no then I guess they have the final say. How rubbish!