Childcare costs through limited company Childcare costs through limited company
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  1. #1

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    Default Childcare costs through limited company

    Does anyone know what the new rules are regarding childcare, specifically around putting costs through your limited company. I know the rules were changed in October 2018, but I'm reading and being told contradictory information so would be good to get some clarification.

    The scenario I have is:
    - one child in nursery since 2017, paid direct by my limited company. Can I continue to do this?
    - same child also attends a couple of days pre-school with a voluntary contribution paid personally by me - can this be put through the limited company?
    - second child in nursery since summer 2019. This is paid direct by my limited company but my accountant (Crunch) seem to think I can't put this cost through the company. Is this correct? Is there anything else available?

    Any advise appreciated.

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    Are you kidding, or being serious here?
    I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

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    Quote Originally Posted by Scruff View Post
    Are you kidding, or being serious here?
    We must fear the latter.
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    Quote Originally Posted by Scruff View Post
    Are you kidding, or being serious here?
    I'd say the OP is being pretty serious.
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    Quote Originally Posted by JackMaloney View Post
    Does anyone know what the new rules are regarding childcare, specifically around putting costs through your limited company. I know the rules were changed in October 2018, but I'm reading and being told contradictory information so would be good to get some clarification.

    The scenario I have is:
    - one child in nursery since 2017, paid direct by my limited company. Can I continue to do this?
    - same child also attends a couple of days pre-school with a voluntary contribution paid personally by me - can this be put through the limited company?
    - second child in nursery since summer 2019. This is paid direct by my limited company but my accountant (Crunch) seem to think I can't put this cost through the company. Is this correct? Is there anything else available?

    Any advise appreciated.
    Your accountant is right. It's not something that you can class as a cost/expense to the business.
    Prior to 2018 you could pay from your company, as a salary sacrifice, for childcare up to a limit (I forget what that was). You may well still be able to do that, but you need to ask the right question.

    More info is here Childcare Vouchers - giving your working parents more to play with but it looks to have changed somewhat.
    See You Next Tuesday

  6. #6

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    Quote Originally Posted by Scruff View Post
    Are you kidding, or being serious here?
    Cheers for your help, must be amazing to know everything

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    Quote Originally Posted by Lance View Post
    Your accountant is right. It's not something that you can class as a cost/expense to the business.
    Prior to 2018 you could pay from your company, as a salary sacrifice, for childcare up to a limit (I forget what that was). You may well still be able to do that, but you need to ask the right question.

    More info is here Childcare Vouchers - giving your working parents more to play with but it looks to have changed somewhat.
    Thanks for the link. The limit was around £243 per employee per month which I have been putting through, just need to know what to do with the second child now the childcare scheme has been closed. I'll rephrase my question to accountant and hopefully get clarification.

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    Quote Originally Posted by JackMaloney View Post
    Cheers for your help, must be amazing to know everything
    It's my pleasure. Glad you see that you are still in possession of an ironic disposition.
    I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

  9. #9

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    Quote Originally Posted by JackMaloney View Post
    Does anyone know what the new rules are regarding childcare, specifically around putting costs through your limited company. I know the rules were changed in October 2018, but I'm reading and being told contradictory information so would be good to get some clarification.

    The scenario I have is:
    - one child in nursery since 2017, paid direct by my limited company. Can I continue to do this?
    - same child also attends a couple of days pre-school with a voluntary contribution paid personally by me - can this be put through the limited company?
    - second child in nursery since summer 2019. This is paid direct by my limited company but my accountant (Crunch) seem to think I can't put this cost through the company. Is this correct? Is there anything else available?

    Any advise appreciated.
    Are you going umbrella??


    Sent from my iPhone using Contractor UK Forum

  10. #10

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    Quote Originally Posted by GhostofTarbera View Post
    Are you going umbrella??


    Sent from my iPhone using Contractor UK Forum

    Not planning on, contract is outside IR35 public sector. (Assuming that's why you are you asking?)

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