Backdated childcare vouchers

[DeborahKilpatrick]

Hi

I'm in the process of registering for childcare vouchers and have asked my employer if they backdate them. I'm waiting to hear back, but if they do. how are they paid back? It won't be worth it if nearly a year's worth is taken out of my next pay because there will be nothing left!

Or do they give you it in cash or pay it straight to the childcare provider who then reimburses you with cash?

Thanks for any advice in advance!

Deborah :)

I'm not sure they backdate them. You start getting them from the point you join the scheme.

The schemes vary in terms of administration, but generally you have an online account that the vouchers go into each month. You have to get your childcare provider registered with the scheme (if they're not already) and then you pay them via the online account each month. I'm pretty sure none of the schemes hand over actual cash! Otherwise everyone would be joining them...

Thanks, apparently you can backdate them to the start of the last tax year, but it's at the employer's discretion. I just wasn't sure if there's much point because I would already be getting enough to cover my childcare costs so no point having extra sitting in the account!

I'm surprised that you can backdate them, thought that they just started when you actually join the scheme.

Legally you can receive the tax exemption on £55 a week (or £28 or £25 if you are a higher or additional rate taxpayer), for each week that has passed in a tax year that you were eligible for the scheme (i.e. within this employment and had a qualifying child).

However it is complex to administer via a salary sacrifice arrangement (as that reduces your contractual salary, it's not just a case of taking off money from your monthly wage) and your employer is under no obligation to offer you this option.

As you have until April, it would make sense to split the value over Feb and March. Also whatever you have left would need to cover min wage.