Childcare Vouchers - Which Company is Best?

[chitchatingagain]

I'm asking in this section because I think CMs are the most likely to have had the most experience with different Childcare Voucher companies. I'm looking to set it up for my firm, and want to know which companies to avoid because they pay late, etc, and which ones you have found to be very good.

I use computershare (was busybees). I've never had a problem with it. Although many people have horror stories. If you set up the recurring direct debit and the carer also sets it up on her/his end, then there are no problems. But it does mean that both parent and carer have to spend 5-10 minutes inputting data on their website and setting up the recurring payment. It's really easy, but both have to do it or else it doesn't work. I wouldn't recommend using a system where you have to go into it each month and make a payment or using paper or email vouchers.

What if the value changes? Or does it rarely change? I know mine wouldn't change that often, but others might have more ad hoc childcare arrangements.

You can run your own company scheme. DH does this at work they check the childcare providers ofsted number and then pays them by BACS. They keep a tally of each individuals account.
When it is a regular for say a preschooler they set up a standing order, irregular we inform book keeper of who to pay what and he does it. Really not very difficult. Actually our childminder and people like supercamps and PGL prefer this as it is easier for them. HMRC will give you advice on how to do it.

Oooh, really Lizcat?! Hmm, might have to look into that! I always thought it had to go through a voucher provider but if it doesn't then that will be even better! Only a few employers would benefit so not that much work for the accountant I would have thought.

As a childcare provider, I've not experienced payment problems with:

Faircare
Accor (now Edenred)

There have been some admin issues, such as accor wanting renewal paperwork which Ofsted don't issue! Got round that in the end by insisting that Ofsted send me something - they produced a payment receipt, which was then good enough for Accor. Payment wise they have been fine though.

A friend of mine has had issues with Computershare this month, something to do with the payment date - they set a provider up with only one payment date, so when a parent pays it does not go to the provider until that providers specific payment date. Anyone else found this problem and is there a solution to it?

Depending on the size of the firm you may want to shop around the various providers to get as low an admin cost as possible. You may also want to run the scheme yourself.

Info from Daycare Trust on setting up your own Childcare Voucher scheme
Also see HMRC E18

Beware that unless the scheme is set up with salary sacrifice arrangements that are acceptable to HMRC, both employer and employee will have to pay National Insurance on the value of the vouchers. Voucher providers will help you get this right, but if you are going it alone you are going to need to take advice. This also means that it is difficult to have an amount that varies more than say once a year because a new salary sacrifice agreement must be made each time.

Computershare (formerly BusyBees) have had problems in the past which they may or may not be better at handling in the future.

Edenred (formerly Accor) have had a good reputation in the past.

I'm not a CM, I'm an accountant and have experience of both of these providers from an employer's point of view.

edenred or care 4 no problems,busy bees problems in past

I am paid through Edenred,Allsave and Fideliti,I`ve never had a problem with any of these.I believe that all my employers have found it quite easy to register.

I accept care4 but there have been issues as they pay on the 23rd of the month but take three working days to process so Decembers money I got about 10th Jan I dread to think when Aprils will appear as there are loads of bank holidays again

Kiddicare - no probs
Co-Op - no probs
Accor - no probs
Busy Bees - no probs UNTIL became Computershare then bloomin nightmare at times!!

Note that there are some providers that specialise in small businesses which may be better for you - Kiddivouchers and Gemelli come to mind.

Accor, now Edenred, have always been fine for us. Never had a problem with Care-4 either. Busybees were fine, but were then taken over by Computershare and we're another setting that have had repeated problems with them.
Just started using KidsUnlimited after a false start. They sent us a badly spelled email, telling us that a parent wanted us to register with them. I just assumed it was another scam and binned it. Turns out it was genuine

Thank you everyone.

I'm just speaking to the firm's CFO as to whether it is feasible to run it in-house. If not, then I will have a further look at some of the providers. From an employer's point of view there are variations in the fees they charge the employer, so warrants a close look.

i use kiddyvouchers for our business and there have been no problems - their paper work gives you all the info for the salary sacrifice documentation for HMRC ( you just print it out and add a few of your own personal details)
and they only charge 2.5% as they are a registered charity

Kiddivouchers are not a registered charity, there is info about the company here. 2.5% is about average, some go as cheap as 2% but for a small employer the difference is insignificant.