Setting up your own Nursery Voucher system....

[chjlly]

Has anyone got any experience or is it worth paying the money to BusyBees or Leapfrog??

The company I work for are incorporating and now want to start nursery vouchers and I know that you don't have to use the big comanies but wondered if it was easy to do.

TIA

Chjilly - My employers simply contratced DS's nursery direct for the amount allowed (up to 117 per month tax free??), and I agreed the rest. the the nursery invoiced my employers every month for the £117 and i paid the balance.

The crucial thing is that the employer makes the agreement direct with the nursery, and pays them direct.

This is MUCH cheaper for the employer, as they save the cost of the vouchers - which for vouchers such as accor etc, is pretty much the same as the saving on the employers NI contribution. So by doing it direct the employer makes a considerable net saving. BUT if they have lots of employees taking advantage of this, it could be fiddly and time consuming paying a range of nurseries.

You know your DH can also claim this?

about £217 a month...

I was thinking of doing this with my employer (university) using the Busy /bees system, but had been told by sis (who has been known to bs) that despite what it says in the accompanying literature, it does actually affect your pension - because the amount your employer sets aside (tax free) to pay is effectively coming out of your salary. I'm totally clueless about these things so am curious as to whether anyone has loked into this in more detial?

As I understand it it is a 'salary sacrifice' - so you get nursery care instead of pay. Then, any benefits pegged to the level of your pay would be reduced accordingly - and set in relation to your new level of pay (excl nursery care).

Don't know how you work out whether it is a net benefit to you or not!

thanks for your help will give it a go and can always change things if they don't work!

If it is a small company you just get the payment of £50 deducted from your pay and it is paid directly to the nursery. It saves both you and the company NI and you tax. Effectively your salary is reduced. Both you and your partner can do it for £50 each. Alternatively try accord at www.childcarevouchers.co.uk as they do it.

Ps if your company is good they will give you a notional salary which is the salary before the sacrifice for all your benefits. This is usually the case with salary sacrifice for pensions. All of your benefits should then be on your notional pay. After all you are saving the company money.