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Original poster

Confused by Childcare cost schemes

7 replies

Compact · 23/01/2018 10:37

my wife is currently o maternity leave with our second, and has just been hit with an almost £800 bill from her employer who's just realised they shouldn't have been paying childcare vouchers whilst she's on SMP. We currently both buy childcare vouchers, but when ds starts nursery and we're paying for 2 lots of childcare we'll be better off on the tax free childcare scheme. However we can't work out whether we can use the tax free childcare scheme for one child, and claim the 30 free hours for the other child once dd turns 3? Also, can my wife claim tax free childcare now whilst she's on SMP?
TIA

OP posts:
nannynick · 23/01/2018 15:38

Yes you can use TFC and 30 hours education.

I would use up as many vouchers as possible before switching schemes. There is a short period of time when you can use both vouchers and TFC but you must confirm vouchers have stopped after initial 3 months of TFC.

You would need to check if able to use TFC whilst on SMP with the TFC helpline. My gut feeling is that it would be possible if the weekly lower earnings threshold is met, as whilst on SMP someone is still an employee. However the rules may be more complicated than that, such as what they define as being 'work' - being on SMP is not being at work as such!

PissedOffNeighbour · 23/01/2018 19:13

Where we work we do still pay childcare vouchers when someone is on maternity leave - even when they are on £0 pay. I thought that was standard practice?

Foodymucker · 29/01/2018 19:48

If you go on childcarechoices it will tell you which is the best thing for you to claim eg. Tax credits , funding , vouchers etc.

TittyGolightly · 29/01/2018 19:49

Where we work we do still pay childcare vouchers when someone is on maternity leave - even when they are on £0 pay. I thought that was standard practice?

Nope. The law was clarified a year or 2 ago.

Hohofortherobbers · 30/01/2018 14:43

I received childcare vouchers when on ML and earning £0. It was an in work benefit and so could not be stopped. Even though it's a salary sacrifice and i wasn't earning a salary I still got it, it was 2014

TittyGolightly · 30/01/2018 14:48

The law has been clarified since 2014. What happened to you is no longer what happens Hoho

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