Childcare vouchers monthly or yearly?

[Nut]

Hi,

I usually pay for childcare direct to the provider from my company account, which works out well as the bill is less than the monthly limit.

My question is is the childcare allowance a monthly or yearly figure. I keep seeing it described as x amount per week or month. But could i simply keep track of how much I've spent and on some months pay more from the company account over and above the monthly figure as long as the total for the year is not exceeded?

sorry if this is a really daft question. I know if you buy vouchers you can pay the full whack each month and store up unused vouchers to use later, but not sure how this works when paying direct from the company account.

cheers

[Martin at NixonWilliams]

The allowance is weekly or monthly - Stick to your current monthly payment of <£243 to avoid any complications with HMRC.

Note that smaller allowances apply to higher or additional rate taxpayers, though dividends are excluded from your income for this purpose!

[Nut]

The allowance is weekly or monthly - Stick to your current monthly payment of <£243 to avoid any complications with HMRC.

Note that smaller allowances apply to higher or additional rate taxpayers, though dividends are excluded from your income for this purpose!

Thanks! I think then I should start buying actual childcare vouchers then, and hoard the unused until I need them.

Can anyone recommend a cost effective reliable vouchers service?

[Martin at NixonWilliams]

Thanks! I think then I should start buying actual childcare vouchers then, and hoard the unused until I need them.

This is possible, but there is more administration involved - make sure the vouchers get used or it may become more costly.

Can anyone recommend a cost effective reliable vouchers service?

I can't recommend anybody, but the most popular providers used by our clients are busybees & kiddivouchers.

I hope this helps.

Martin