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Question about childcare vouchers

11 replies

IamAporcupine · 05/02/2018 22:38

Does anyone know if it is possible to pay childcare for someone else's child?

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IamAporcupine · 06/02/2018 11:45

bump Smile

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sirfredfredgeorge · 06/02/2018 12:06

If you mean via the tax salary sacrifice scheme - then you need to have parental responsibility for the child being cared for.

IamAporcupine · 06/02/2018 12:18

Thanks, yes the tax salary sacrifice scheme
So I could not ask the childcare provider to invoice me for someone else's child?

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Zodlebud · 06/02/2018 12:40

I believe you need to be the parent, legal guardian or have parental responsibility for the child in question.

The employer pays costs associated with these vouchers so are designed to be used only by the employee - why would they pay for someone totally unconnected to the company?

There is also a tax aspect. Tax is not deducted so you could end up in a position where someone got them, paid for another child's care and then was reimbursed in cash by that child's guardian. Unlikely scenario but would be seen as tax avoidance / fraud by HMRC.

IamAporcupine · 06/02/2018 13:12

Thanks Zodlebud

I get vouchers for my son and pay for childcare through this scheme. The reason I was asking is because I have too much money in the account and do not want to lose it, so I thought I could pay for another child in exchange for extra-curricular lessons (given by the parent).
Didn't realise this would imply tax avoidance.

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OlennasWimple · 06/02/2018 13:14

No, you can't use it for someone else's child.

But you probably won't lose the money either - you can use it until the child is 15 (IIRC). It can soon get eaten up with holiday clubs etc, even if you don't need as much regular child care as they get older

IamAporcupine · 06/02/2018 13:16

Ok, thanks!
You are right, still have 10 years ahead!

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Lonecatwithkitten · 06/02/2018 16:15

When they are older you can use them to pay for things like PGL holidays in the school holidays.

Ilovewillow · 06/02/2018 16:24

You can apply for the money back but due to the tax benefit you have received it will then need to be taxed. I organised this for an employer and the money was returned less tax. If it's a small sim I'd leave it and use it for holiday clubs etc which allow payment in vouchers.

TinaMena · 06/02/2018 16:56

I thought you had to use the vouchers within a year of obtaining them. That might be the old scheme, though. You can always have a refund and have them paid back into your salary, but you'd pay tax on that.
If your childcare provider is willing to turn a blind eye, you could pay them to the provider, and have another parent pay you the cash - I don't know if there's some sort of audit process to pick up on that, though?

IamAporcupine · 06/02/2018 18:13

Thanks everyone!

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