Can former employer make me pay them back for childcare vouchers?

[TalkFastThinkSlow]

I started a new job at the beginning of March, and signed up for the childcare voucher scheme.

I quickly realised the job was not for me, and quit after a couple of weeks.

I did not receive the childcare voucher login details.

I have been paid for the 2 weeks i worked. My payslip does not show the deduction for the childcare vouchers.

However, enclosed with my payslip, I also have a letter from them saying they messed up my payslip. They did not deduct the CH vouchers, but they have actually paid the £243 into my CH voucher account, and could I send them a cheque for the £243.

i don't think i should have to as

1. I don't have the CH details so I can't pay my provider, as I did not receive them before quitting. In fact, I have already paid my provider for this month.
2. As they did not deduct the CH vouchers, the appropriate tax would not have been applied to my payslip. If I paid them back the £243, I would in fact be owed about £50 for the missing tax

Do you think I need to pay it back? Legally, can they make me pay it? Also, if anyone can think of a way to phrase my email back to them, that would be nice :)

That doesn't sound right to me - you're correct regarding tax so you'll definitely be out of pocket if you do pay them back. I'd just ignore to be honest.

I think it's more like £70 odd tax you'd be out if pocket by. I'd just ignore it and wait to see if they pursue it.

Can you contact the voucher provider to arrange access to the funds for future childcare costs? This has never come via the employer for me.

Assuming you aren't a higher rate tax payer - then from here - www.kiddivouchers.com/calculator.php - £933/12 = £77.75.

thank you both, I am also tempted to ignore them!

I don't even know who the voucher provider is. I just filled in an additional form for their payroll team, and I hadn't received anything back by the time I handed in my resignation.

charity that sounds about right.

Sounds like they need to take it up with the vouchers provider. If the account exists in your name you may have to give permission to release it back to your employer from that account, which is fair.

Loraline that makes sense. I'll write to my employer with permission to do that.

*former employer.

If the money hasn't gone from your Ch voucher account to pay your Ch provider, I don't think you'd be out of pocket on tax. You can not make the saving because you have not used Ch vouchers to pay your childcare provider.
Thus, the company have put £243 into an account somewhere, which hasn't ever reached you or made any difference to your financials, so ideally they would get that back and everyone would be fair and square.

You just need to ask the employer to forward details of the Ch voucher account, then you can contact them, withdraw the £243 and send it back to the employer.

Annoying additional admin for you, but I suppose the only mistake they've made is not giving you the logins before you left, they set up the account in good faith but you left before it got to the point of you moving that money along (which is fair enough, I've quit a job after 2 days before!)

Only kink in that plan Curls is that you can't withdraw money from a childcare vouchers account. You can only release it to a childcare provider. It may be, OP that you need to just use it next month to pay your provider and then send the £245 you 'saved' from your usual payment to your employer. A lot of hassle though. Best to see if employer can get it back directly first

The voucher provider should be able to refund your employer no problem. If it has already been paid to the childcare provider then you do owe the employer the money as you will have had £243 for free. It won't affect your tax etc as you've not had it taken from wages so not saved or paid any tax on it.

Ignoring it seems dishonest.

Thanks all.

As far as I am aware, it hasn't been paid to my childcare provider, as I hadn't had a chance to go in and assign it to them.

I'll email them advising that they need to ask the provider to return it to them.

Ah I didn't realise you couldn't withdraw the money to the account owner, but of course it makes sense otherwise it would leave the system open for tax dodging.

In that case then yes the employer needs to liaise with the voucher provider, so I would politely respond to the employer stating:

• You have not received the tax benefit as the sacrifice was not taken from your salary
• you are unable to use the vouchers or even access the account as the employer didn't complete the set up with you
• therefore the employer should liaise with the voucher provider to try and arrange a refund, as this money has never passed through your hands or been in any way your responsibility.

Curls thanks for the wording, that's great :)