Tax Free Childcare as a New Co. Director

[Swervin_Mervin]

Just looking for a bit of advice if anyone can assist at all.

I recently setup a new business venture with 2 colleagues - literally within the last 3 weeks. Having dropped off the childcare voucher scheme of my last employer, I'm looking to switch to the new childcare account.

I note it says that the minimum wage limit doesn't apply if you're self-employed and started up within the last 12mo, but as far as I'm aware I'm not self-employed - I'm employed as a Director by the Ltd company. Or have I got that all 4rse about face? However, at the moment I'm not being paid. Am I therefore still technically employed if I'm not on the payroll yet, and therefore am I still eligible for opening an account?

[Jockman]

Reminds me of applying for mortgages with Halifax many years ago. Because my shareholding was above 25% of my company they regarded me as de facto self employed.

Maybe this viewpoint prevails? Maybe you need to have a contract?

[Craikeybaby]

I thought the voucher scheme was stopping for new entrants, and everything was moving to the new government one that anyone can use?

[Swervin_Mervin]

The new one is not that straightforward...

[oop north]

It’s a while since I heard any mention of this but I have been told (on a tax course) that it’s based on your salary as a director but dividends are ignored. I think if you are a director you are employed anyway - don’t need a salary to be employee

[Swervin_Mervin]

oop north said:

It’s a while since I heard any mention of this but I have been told (on a tax course) that it’s based on your salary as a director but dividends are ignored. I think if you are a director you are employed anyway - don’t need a salary to be employee

Cheers. That seems to resolve the issue of employment. However, you have to be earning the minimum wage to be eligible - so if I'm currently unpaid...