Saving Money With Childcare Vouchers

Childcare vouchers are not always well known or understood. They are commonly viewed as a scheme that only employee’s can benefit from, however this isn’t the case, business owners and Contractors can benefit too.

Essentially, Childcare Vouchers enable you to pay for childcare out of your basic rate taxable income. A company can claim a maximum of £243 per employee per month for childcare vouchers. If both the husband and wife are employed by the company then each can claim this amount so that you would get a total of £486 tax and NI free.

To benefit your childcare provider must hold either a current registration certificate (with a unique reference number (URN) or an approval certificate with an expiry date and reference number.

If you are paying direct to a nursery then the easiest way is to set up a formal agreement between the company and the registered nursery / childcare provider to pay up to the maximum, with an agreement that any excess is paid personally to the parent. The company then pays direct to the nursery.

Let me know if you need any help. We can also show you how the tax system works, what you need to do to sort out your financial administration, oh and Chris makes really good coffee.

 

 You can ring me, James Sheard or any of my team on 0161 303 0610or take a look at our website www.theaccountancypeople.com