Childcare Vouchers or Government Funded Childcare

[Too Late]

Hi All

I am wondering if childcare vouchers are worth taking and if they are, either its best to take Childcare Vouchers or Government Funded Childcare
At the moment i am self employed and have a 1 year old, we put a bit away each month but do not draw on any childcare vouchers at the moment

I am not sure what to do for the best

Thanks
Nick

[rsbmw]

Childcare vouchers is always worth taking, presuming you are above the zero income tax band. It is salary sacrifice, meaning you would pay no tax on that income.

Government funded childcare, is this the free 15 hours for kids of 3 and 4? In which case, absolutely this is worth taking also.

[BoRED S2upid]

Use both.

[Craikeybaby]

I've looked into this, as my son will be starting nursery in a few months.

I found this calculator useful: https://www.kiddivouchers.com/tax-free-childcare-s...

I will be using the voucher scheme offered by my wife's work.

[chip*]

I wasn't aware you could buy childcare voucher in advance to redeem at a later date.

Can you buy/claim childcare vouchers as soon as your child is born from say my Limited Company (do I buy vouchers from 3rd party outright, or can I accrue for these childcare cost in the accounts?)

Is there a deadline for the childcare vouchers to be redeemed?

/apology to OP for going off tangent

[BoRED S2upid]

chip* said:

I wasn't aware you could buy childcare voucher in advance to redeem at a later date.

Can you buy/claim childcare vouchers as soon as your child is born from say my Limited Company (do I buy vouchers from 3rd party outright, or can I accrue for these childcare cost in the accounts?)

Is there a deadline for the childcare vouchers to be redeemed?

/apology to OP for going off tangent

Yes they do expire might be after 12 months you would have to check.

[Guvernator]

chip* said:

I wasn't aware you could buy childcare voucher in advance to redeem at a later date.

Can you buy/claim childcare vouchers as soon as your child is born from say my Limited Company (do I buy vouchers from 3rd party outright, or can I accrue for these childcare cost in the accounts?)

Is there a deadline for the childcare vouchers to be redeemed?

/apology to OP for going off tangent

I run a Ltd Company and pay for child care directly through my business and expense it as child care allowance. All above board and easier\more efficient than faffing around with vouchers although there is a limit on how much childcare you can pay for this way. I don't think you can pre-pay or accrue childcare allowance though.

[Too Late]

Guvernator said:

I run a Ltd Company and pay for child care directly through my business and expense it as child care allowance. All above board and easier\more efficient than faffing around with vouchers although there is a limit on how much childcare you can pay for this way. I don't think you can pre-pay or accrue childcare allowance though.

Hi Guvernator
Im interested about how you do this, do you ask the nursery to invocie your company?
Do you mind letting me know how you do it as it seems alot better than the voucher scheme

Thanks
Nick

[rsbmw]

Guvernator said:

I run a Ltd Company and pay for child care directly through my business and expense it as child care allowance. All above board and easier\more efficient than faffing around with vouchers although there is a limit on how much childcare you can pay for this way. I don't think you can pre-pay or accrue childcare allowance though.

Surely the limit for this is the same as childcare vouchers, i.e. £124pm for 40% tax bracket, £243 for 20%

[oyster]

BoRED S2upid said:

chip* said:

I wasn't aware you could buy childcare voucher in advance to redeem at a later date.

Can you buy/claim childcare vouchers as soon as your child is born from say my Limited Company (do I buy vouchers from 3rd party outright, or can I accrue for these childcare cost in the accounts?)

Is there a deadline for the childcare vouchers to be redeemed?

/apology to OP for going off tangent

Yes they do expire might be after 12 months you would have to check.

They don't expire. They last until the child is 15 or 16.

I am stockpiling for use on summer camps and suchlike.

[Guvernator]

Too Late said:

Hi Guvernator
Im interested about how you do this, do you ask the nursery to invocie your company?
Do you mind letting me know how you do it as it seems alot better than the voucher scheme

Thanks
Nick

Yes just get the nursery to invoice your company and then pay them direct from your business bank account and put it down as a childcare expense on your company bookkeeping. The limits are as rsbmw has stated in his post although this is per person so if you have someone else working for you, they can also claim.

[Too Late]

Guvernator said:

Yes just get the nursery to invoice your company and then pay them direct from your business bank account and put it down as a childcare expense on your company bookkeeping. The limits are as rsbmw has stated in his post although this is per person so if you have someone else working for you, they can also claim.

Fantastic. Thanks for the reply. Really appreciate the help

[Mattt]

Are you self employed or Ltd? AFAIK self employed can't use childcare vouchers but will be able to use the new scheme

[oop north]

rsbmw said:

Guvernator said:

I run a Ltd Company and pay for child care directly through my business and expense it as child care allowance. All above board and easier\more efficient than faffing around with vouchers although there is a limit on how much childcare you can pay for this way. I don't think you can pre-pay or accrue childcare allowance though.

Surely the limit for this is the same as childcare vouchers, i.e. £124pm for 40% tax bracket, £243 for 20%

Except that if a company director is paid a low salary (say £8k) then they can have the £243 as the eligibility is determined by what the company as employer can "see". At least that is what I was told on a tax course - never been in a position to use myself