Childcare vouchers?

[Rhian82]

I'm about to leave my job to go freelance (journalist), and I'm a bit gutted that we'll lose the savings I currently get from childcare vouchers. I've checked and we won't be entitled to any more tax credits.

Is there any way to set up your own voucher system if you're self-employed? Or is it something like sick pay that you just have to kiss goodbye to?!

You cannot get/use them if you are self employed. Stupid, annoying, but true!

Can your partner, if you have one, get them? That's how we do it, though my husband's company since I am not eligible.

Oh yes, he gets them, but our nursery fees are over £600 a month, so we used to both get the maximum amount and then still pay a bit directly.

Thanks for the info though ? it does seem really stupid and unfair!

Yep, its a nightmare as when self employed your profits are your earnings and once combined with you hubbys earnings it can easily be over any assitance.

Even though we make a profit doesnt mean we make huge drawings and need to pay off our debits and invest in more kit. No way can we afford huge salaries for ourselves so last year we were really struggling with childcare costs.

Could you / is it worth setting up as a Ltd co?

My partner set one up recently, the accountant has told us that we can take £243 out each (I also draw a small salary from the company) per month. We pay these directly by standing order to the nursery and clearly mark it as CCV's and our names. Apparently it is fine to do this.

In addition I am employed part-time by another company, from which I also take £243 a month in CCV's. The accountant is aware of this and apparently it is still fine - I will have a small tax implicaiton but we are still quids in.

No idea if the this would make it worth setting up a Ltd co tho!

In addition I am employed part-time by another company, from which I also take £243 a month in CCV's. The accountant is aware of this and apparently it is still fine - I will have a small tax implicaiton but we are still quids in.

For others reading this, the 'small tax implication' is that it is your responsibility as an individual to inform HMRC that you are receiving two lots of vouchers and you have to pay tax on the excess of vouchers over £243 per month. Neither you nor either of the employers have to pay additional National Insurance though.

The biggest saving with a Limited Company is Class 4 National Insurance, childcare vouchers are just the icing on the cake.