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Childcare vouchers(3 Posts)
Just looking for some no nonsense advice really.
I'm going back to work at the start of November after my maternity leave for DC2. We never claimed childcare vouchers after DS was born - partly because we were too lazy and partly because my work's bookkeeper put us off. Now I'm going to be paying for 2 lots of childcare I am looking for any extra money I can find. DH's work won't offer them, and my work are being kind of cagey at the moment as to whether they will or not. Basically there isn't an existing scheme set up and they're suggesting that it won't be worth my while to take them - but they haven't really explained why. The accountant told me that I might end up paying no tax since I only work part time and don't earn very much anyway... Perhaps I'm being naive, but I'm not sure why paying no tax is a problem?
I guess perhaps I don't really understand how it all works and whether it will be in my interest to take them or not - but when I look on the childcare vouchers website it's all aimed at selling the scheme to you, and conversely, I'm not entirely sure I trust the advice I'm getting from my employer. Really I could do with some impartial guidance.
Oh and are they scrapping the scheme anyway?
there is no hassle at all in working the childcare voucher system - my husband has a small company and only 1 of our staff has childcare vouchers
i used kiddy vouchers and they do most of the tax side and legal revenue business for you and you just fill in the blank bits (all on-line)and send it off for the revenue to approve it - (but as it is the revenue 'model' there is, in theory, no problem) it costs me 2.5% of the value of the vouchers in admin once a month, but as it costs me less in national insurance it is tax effective to our company ( it is only a guess, but perhaps your works book-keeper is a bit daunted by the prospect and does not want to admit it)
it only saves the company money if they are paying over national insurance
and also, it must not mean that you are working for below the minimum wage
not heard of it being scrapped, but it did alter for higher earners from April this year
why will your husband's work not offer them, i know they are legally obliged to , but it really is very simple
Thanks for the info. I work in a very small company too - there's only me and the boss on the payroll regularly - so it's good to hear from someone who has experience of a similar sized business.
No idea why my husband's company won't offer it. I suspect they're just being tight and they don't like the idea of any extra admin. He did say he'd raise it with them again, but I don't think he holds out much hope. What's kind of annoying is they do offer Luncheon Vouchers which is kind of a similar scheme - if you know what I mean.
I think you might be right about my work book-keeper being daunted by it - she did say to me that I could do the admin for it if we set a scheme up... which then in theory wouldn't cost the company anything extra in terms of running it... although I don't know if we will actually get that far. I have a feeling they're just going to try to brush it under the carpet and forget about it.
So, if I understand what you've said, it doesn't really cost the company anything extra once you've taken the NI reduction into account? Or at least very little?
Think I need to go back to the book-keeper and ask her again why she feels it isn't worth my while.
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