Can I get child­care voucher re­funds?

The Daily Telegraph - Your Money - - YOUR MONEY -

Par­ents with un­spent child­care vouch­ers are in­creas­ingly turn­ing to their em­ploy­ers and child­care providers for help, Tele­graph Money has learnt.

So what are the rules? Edenred, one of the main providers of child­care vouch­ers, said it did not of­fer re­funds for un­used vouch­ers. There could be a way to get your money back if your em­ployer per­mits it, but many don’t. An Edenred spokesman sug­gested ask­ing your com­pany as child­care vouch­ers are a “con­trac­tual ben­e­fit be­tween an em­ployee and their em­ployer”. It is a com­pli­cated sit­u­a­tion be­cause of the way the vouch­ers are pur­chased.

Par­ents can buy up to £243 worth of child­care vouch­ers via a “salary sac­ri­fice” scheme or­gan­ised by their em­ployer. The vouch­ers are bought be­fore tax and Na­tional In­sur­ance are de­ducted. Ba­sic-rate tax­pay­ers sav­ing the max­i­mum could save £933 a year. The vouch­ers can be used to pay for reg­is­tered nurs­eries, af­ter-school clubs and child­min­ders.

The Child­care Voucher Providers As­so­ci­a­tion, which works to de­velop sys­tems of best prac­tice, said the vouch­ers must be re­funded through your em­ployer’s pay­roll to make sure the cor­rect tax is ap­plied. Other child­care voucher providers said they did not or­di­nar­ily of­fer re­funds – although the in­for­ma­tion was vague.

Kid­di­vouch­ers said that un­der HMRC rules, re­funds were only al­lowed if you could not use your vouch­ers as a re­sult of “ex­cep­tional and un­fore­see­able cir­cum­stances”, at the dis­cre­tion of the em­ployer. Early Years Vouch­ers said re­funds were al­lowed in cases of over­pay­ment, but un­der “nor­mal cir­cum­stances” it would not of­fer em­ploy­ees their money back. Busy Bees Ben­e­fits said it would only al­low re­funds via your em­ployer. Com­put­er­share Voucher Ser­vices said it would re­fund vouch­ers if the em­ployer al­lowed it. How­ever, all re­funds must be made through the com­pany’s pay­roll.

Par­ents should also check ex­piry dates on child­care vouch­ers.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.