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Childcare Vouchers and SMP

6 replies

CJMommy · 22/08/2011 23:13

Ok, so have read through previous threads but need some specific advice.

I have carried on paying for CC vouchers whilst on mat leave with DC2 (Have been receiving them for 3 yrs with DC1). Anyway, I forgot to cancel them between weeks 17-25; my fault and probably irrelevant anyway.

So, work for a large public sector organisation and receive 8 weeks at 90%, some at (?26 weeks) at 1/2 + SMP, then a few months at SMP only.

I have recently gone back to work in the last two weeks and my last payslip shows (correctly) that I had gone down to SMP only prior to my return. However, they have deducted £243 for childcare from my SMP - am I right in thinking that this is not allowed and they should have paid my CC vouchers and the full SMP?

If so, does anyone have a link to something to send to the HR dept as they are not the friendliest bunch where I work and am sure they will try to shout me down?

Has anyone else had this 'battle?'

Of course, if I am wrong please ignore my ramblings!!! Grin

OP posts:
Grevling · 23/08/2011 10:51

They can't make any deductions from your SMP.

CJMommy · 24/08/2011 21:09

Well, I spoke to payroll today and was told that cc vouchers and SMP is currently 'under investigation' and will be updated as soon as possible??? Does this mean that I'm not going to get my money back?

OP posts:
Grevling · 25/08/2011 00:36

It's simple. While on mat leave you get access to non salary benefits - this includes childcare vouchers.

Also no one can make deductions from SMP so if they've not paid you at least the SMP rate then they are breaking the law....plain and simple.

Arion · 25/08/2011 01:07

Sorry Grevling but you are wrong see here

Certain deductions can be made from SMP. Also, childcare vouchers are a "salary sacrifice" which reduces your tax and NI payments not a non salary benefit.

It is a grey area at present, some companies cover the vouchers during mat leave to ensure against any risk of sexual discrimination litigation, this is no means accepted under employment law. Whilst you have the salary to cover, these payments (and others such as pension, share save plans) will continue to be made.

flowery · 25/08/2011 12:31

Not grey at all in my view, or in that of HMRC see here guidance on SMP and salary sacrifice. Childcare vouchers are a non-cash benefit provided by an employer in return for a portion of salary being sacrificed by the employee. Page 7 of the guidance I linked to from HMRC is clear that deductions cannot be made from SMP to reflect salary sacrifice arrangments.

Yes there are certain deductions that can be made from SMP, but salary sacrifice amounts are not among those.

hooplahoop · 06/09/2011 19:37

Please could I hijack/ add in?

I had a similar issue last month ( am with NHS) they admitted it was a mistake to take out of SMP and will reimburse, but the previous month I got a little Occupational MP, ( but less than the vouchers) and they did take the money out of my pay, any chance I can claim this back?

Thanks

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