Self-administering childcare vouchers for my Ltd company.(14 Posts)
Hi, I have a limited company which employs only me, and I've decided to self-administer a childcare voucher scheme to pay my daughter's childminder. I just wanted to post what I think I have to do, firstly so that if anyone knows better that can correct me and/or answer a couple of queries (thanks in advance!), secondly in case it helps anyone else.
I have to:
- Write down either 'scheme rules' or a 'written agreement' between the company and myself. This will probably say that I am eligible to £55 per week childcare vouchers, (basic rate taxpayer) without salary sacrifice.
- I'm not sure if I need to have an employment contract for this to be valid, or if I need one anyway?
- Companies are supposed to keep evidence that they have informed all eligible employees about the scheme. Not sure if I have to write myself a letter or if this is unnecessary?
- keep a copy of the childminder's Ofsted registration
- keep a declaration from the employee that I have parental responsibility for and live with DD and DS.
- Companies are supposed to keep records of the child's details. Not sure if I have to formally make a record of them 'for the company' since I obviously have access to their birth certificates, etc.
- make a spreadsheet to keep track of all the numbers, which will be used to do my accounts with
- make a voucher, see below
- talk to the childminder about it
The voucher will look like a letter with my company letterhead, the words 'childcare voucher' and the amount. The way I picture it is that I will print it to include my name, DD or DS's name, the childminder's name and registration number. There will be spaces for the date, and the childminders signature.
Each week I will print one. I will give one or two to the childminder at the end of the week, she will fill out the dates and sign, then I will pay her that amount by transfer from the company and the rest from our own account.
If anyone else is doing this, let me know if I missed something, and ask me any questions you have. I have read a bunch of documents on this, so I might at least be able to point you in the right direction.
I will post back if I find out anything else...
I might be wrong but I thought you had to obtain the vouchers through an organisation like BuzyBees. You have to register your company's scheme with them. I didnt think you could just type up your own vouchers.
I believe you are wrong. Any company can administer its own voucher scheme or choose to use an externally run scheme. What I am doing is a self-administered scheme, hence I issue the vouchers myself.
The only difficulty with this is getting someone to accept something you have 'typed up'. Since our childminder knows us and she will be getting paid by bank transfer at the same time anyway, I don't think there will be any problem. In fact I think she would prefer this to an external scheme, where she would have to send the vouchers off, wait for payment, chase them up when she doesn't receive it...
Obv this probably wouldn't work if you are trying to pay a nursery..
Ltd company can do their own vouchers, DH does them for DS nursery fees. I don't know much about it, I will show him this thread and ask if you missed anything
Ok I'm wrong.
Why would it not work for a nursery
Technically they should accept them. However given that they don't know you particularly well and have never heard of your company, they might worry that they are not going to get paid if you hand over a voucher that isn't from a scheme they recognize.
That sounds about right, but don't forget the earnings assessment. Or pay 3.5% to a voucher provider to do it all for you through an online system that almost any provider will be happy to accept.
Thanks MrAnchovy I did read about that but had forgotten, so I'm adding it to my to-do list.
I've seen you recommend to use a provider on most of these threads, but I've chosen not to, so this thread is about how to roll your own.
I should add, the saving of about £80-90 a year as compared to an external provider definitely undervalues even just the time I have spent on it so far and is not why I'm doing it.
A big reason is that my childminder has used vouchers before, and hates them, because she never gets the money on time, has to chase them, etc. That time, hassle and damage to our relationship also has a cost. This way I will know she is getting paid at the end of the week as usual. If for any admin reason we can't pay her through the vouchers that week, we will just pay her from our account, and save the vouchers until it's sorted out.
Hi was just hoping on input whether the self-administered scheme worked out for you. Was there a reason you chose not to go for the directly contracted childcare option with two separate payments (one from ltd co, remainder from you)?
Would be very interested in hearing your experience as I'm planning to do the same. Thanks.
We did our own self admin scheme. I didn't bother printing any vouchers though. Just paid the childcare bill direct each month from the company bank account
Thanks for the response AveEldon. I've set a scheme up (vouchers and all) and will be doing this from now.
Thanks for the messages above about running own childcare scheme - I do the same for limited company and give them the vouchers.
I think they ignore them - they just like the company money.
Anyone know if this needs to be changed in light of new tax free childcare schemes ??
I know it's not in yet but it's coming and I am curious about the effects and how to assess it.
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