does anyone know anything about childcare vouchers?

[nowwearefour]

how many hours per week do you need to be using childcare to qualify? do nannies ever accept them? we will be using a nanny one day per week and the additional burden on her tax bill will be picked up by us and it is HUGE. we would love to use the vouchers to help out if at all possible.

[nowwearefour]

bump someone out there must know something about these things?? pretty please?

[flowerybeanbag]

This is a commercial website but with some useful info on it Accor

[dizzydixies]

different companies use different vouchers but we're certainly with ACCOR and its saving us tonnes

you'll need to ask the nanny if she accepts them, I know child minders/nurseries and relatives do if they register

sorry am not more help

[uptomyeyes]

If your nanny is registered with the local authority then you can pay her using vouchers. But you will need to provide her registration number and I presume she would be subject to some sort of inspection/interview.

You don't need to be using a certain number of hours - for instance you could accumulate £xhundred pounds worth and use them all to pay for registered holiday play schemes.

[dizzydixies]

we do that, between me and dh get more than we need each month as sometimes we have to put them in extra and that means we don't have to find the spare cash for it

they really are worthwhile and a lot of places are doing them online to save you paperwork too

[nannynick]

If you are not working many hours, and/or on low pay, then something to consider is that Childcare Vouchers are a salary sacrifice scheme. You can not sacrifice salary which results in your salary (excluding the amount sacrificed) being less than National Minimum Wage. This can mean that low paid workers, can't have Childcare Vouchers, even if their employer offers them.

As a nanny, I accept Childcare Vouchers. Applies only in England to my knowledge, nanny needs to be registered with Ofsted under the Ofsted Childcare Register (some nannies may still be under the old scheme - Childcare Approval Scheme - and can accept vouchers, but their registration details will change sometime before Sept 2008).

[nowwearefour]

can my husband get the vouchers or does it have to be me? (or both? it will be the same employer)

[nannynick]

If your employer offers them, then they have to offer them to all employees I think (well, those who qualify, as some won't due to pay level). So, if you both work for the same company, then both of you can get the childcare vouchers.

[nowwearefour]

thanks. will ask our probable nanny if she accepts them then

[Heated]

There is a govt link that explains - not that brilliantly - whether you should use child tax credit of childcare vouchers. can dig it out if you think it would be useful? Generally the advice seems to be the more you earn the better salary sacrifice is. You can both put upto £243 towards childcare and it saves about £1200 a yr I think.

[nowwearefour]

thanks. i am a bit confused re child tax credit i think our household income may be too much to get it- is that possible? thanks might be good to see if it isnt too much trouble for you.

[nannynick]

I may be missing something, but if you are only employing a nanny one day a week, depending on how much you pay, you may not have to pay any Employers NICs.
Nannies wages (in contract) are always GROSS, never NET. Do Not Agree A Net Wage With Your Nanny! As your nanny will only be working 1 day per week, I would expect they would be on BR tax code for your job, so as employer you will deduct Tax and NI on your nannies behalf. It is taken from the GROSS salary, it isn't extra money you need to find as such. Please make sure you understand how PAYE works, the new employers pack from HMRC has useful info - plus do feel free to post over in the Nannies Childminders board, for advice from parents and nannies.

[nannynick]

Yes, you may not get Childcare element of Working Tax Credit, due to your (or your DH) income being too high. WTC5 may help explain about Working Tax Credit.

[nowwearefour]

thanks for this. the problem is that my nanny works 2 days a week for another family. she has stated how much she wants net. how do i deal with that then? my agency recommended that i agree a gross salary with her. should i do this and then what happens with the tax is her problem then? kimd of feels a bit mean? do we not have to paythe employer nic because of the other days she isworking? thanks for the link will try to use it

[stealthsquiggle]

Definitely possible that your household income is too high for tax credit - ours is. Childcare vouchers, however, are one of very few tax breaks which are not means tested. You and DH can get up to £243 per month each through salary sacrifice (i.e. you choose to take £243 of your gross salary in the form of childcare vouchers, and therefore pay no tax or NI on it). If, as someone pointed out, this would take you below the minimum wage, then you could still take less - you should be able to nominate the exact amount (although if it like ours, you can only change it once a year or after a designated "life event"). My employer uses Care-4, DH's use Accor. Both combined still don't come close to covering our childcare bills

[Heated]

Ok, this link is good for salary sacrifice info and it has other links in it
www.pcs.org.uk/Templates/Internal.asp?NodeID=896586

Re Nannyshare and paying for one
www.nannyshare.co.uk/nannies/employing-and-paying-nanny.html

[Heated]

Also salary sacrifice could take your salary down enough to qualify for WTC strangely - at least that what it seems to say.

[KatyMac]

NI contribution are job based so each job can be either above or below the limit (about £90?? not sure)

She should arrange to get her tax code split - but her other family won't like that

So you might have to pay 21% (or is it 22%) on top

Do be careful

[KatyMac]

Maybe heated - but it also takes your childcare bill down

[nowwearefour]

thanks for this. the link re sharing a nanny makes so much sense- tehy are getting the entire free tax allowane and we would be paying tax on the whole amount. if she wanted 85 net i wnder if we can commit to 120 gross. the incentive is then with her to sort something out with the other family?

[Heated]

This is the info from HM Revenue & Customs tucked away in some internet backwater:

www.hmrc.gov.uk/childcare/interaction-tc-cv.htm

[KatyMac]

no way is £85 net £120 gross (well n ot using my maths)

£120 is about £93 net & no liability for NI as under the limit

[KatyMac]

no way is £85 net £120 gross (well n ot using my maths)

£120 is about £93 net & no liability for NI as under the limit

It's about £108 (ish)

[KatyMac]

oops

[nannynick]

You don't agree to NET wage. The amount you pay her, could easily at any point, especially at each new Budget. As the employer, you lose out if you agree to paying a NET wage. Please don't agree to that.

Agree a Gross wage. Make sure your nanny understands that the amount they take-home will change for various reasons though-out their employment, such as if their tax code is changed, if tax rates change etc.
You can use ListenToTaxman to calculate roughly what the net wage, from a gross wage will be. So if your nanny wanted £100 per week net, and her tax code in your employment was BR (thus not taking into account any of her personal tax allowance - as this is likely to be used by the other family), then gross pay is around £125.15 per week.
When she starts with you, you will need her to complete a P46 and from that, you will get the starting tax code. HMRC will then inform you if they wish you to use anything different (such as if the nanny has requested to them, that she wants her tax code split between her employments, or if HMRC are clawing back any back-tax due, or any other payments taken directly from source).

If paying 125.15 per week, that's £6507.80 per year (52 weeks), using E-Gismos UKPAY, with tax code 0 (BR) then it says that Employers NI is £164.20 per year. Please keep in mind that these calculators may not be precise, as there are many things that can affect tax calculations... but they are a pretty good guide.

The employers NICs is calculated on the amount you pay your employee. Other employments do not come into the equation.
To make things easier for yourself, forget the other employer exists - as it isn't your problem. All you need to remember is that you always pay GROSS and that your nanny needs to complete a P46 (as she won't be giving you a P45).