Anyone about to go on maternity leave and currently using childcare vouchers, READ THIS. It could save you £2K!

[Jojay]

Did you know that if you stay in the scheme while on your maternity leave, employers are unable to take the £243 tax free deduction from SMP, and therefore must pick up the tab for this themselves?

This means that you will get £243 paid into your childcare vouchers account while you are on maternity leave - a significant amount!

This benefit is not well publicised by employers, and most encourage you to leave the scheme so that SMP calculations are unaffected, but the benefits of staying in the scheme are likey to far outweigh that.

Read this thread here

I work in HR and it's all true; you are entitled to Childcare Vouchers if they are treated as a benefit (which HMRC advise they should be) and for the deduction of vouchers not to be taken out of your SMP.
So if you are receiving SMP only during mat leave, your employer is obliged to continue providing and actually pay for your vouchers, as your SMP is protected.
If you receive enhanced company mat pay, your employer is obliged to continue providing vouchers and can still make the deduction of vouchers from your pay providing it does not fall beneath the SMP level.
See here for more information;
www.personneltoday.com/articles/2009/06/10/51018/childcare-vouchers-and-materni ty-leave.html

Hi all,

This sounds great.
Just wanting to check how this would work for me.

I'm currently working part time - and earning approx £800 net a month. I'm approx 6 weeks pregnant (so still early days) with DC2.

I have just started getting childcare vouchers for DS1 and at the bottom of our scheme it says "If you are currently receiving Childcare Vouchers as part of your salary and become pregnant please contact your payroll department or Busy Bees immediately."

My questions are:

1. Do you reckon they're going to try and make me stop the vouchers?
2. If they do is there anything I can do?
3. Will I be significantly worse off for my 6 weeks?

Thanks

apparently my employer pay the benefit during the smp period and then recoup it from my return to work bonus... does this sound right?

I have just been informed of exactly the same thing, I am just about to return to work after 12 months maternity leave and my employer has informed me that they will recoup the cost of the childcare vouchers provided (£2187)from my first month's pay. Does anyone know if this is legal? Can they do this?