Hi
I need some help regarding my childcare scheme for my freelance limited company
I have run my own scheme and have vouchers for each payment of childcare over the past 2 tax years to a valid provider.
However, I note the actual payments have come from the employee bank account and not from the company account.
I think the employee is now liable for historical PAYE and NI contributions.
Can you confirm and what should I do next?
Replies (4)
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Please clarify
Are you both the employee and the limited company?
How have the childcare payments been reflected in the company's accounts for the past 2 years, if there have been no payments from the company bank account?
By vouchers, do you mean invoices from a qualifying childcare provider?
There is nothing to stop an employee paying for childcare, but it would obviously come out of the individual's taxed income and the employee would not get the tax-free benefit of employer funded childcare.
No big problem
If the company reimbursed you for your personal childcare costs, it should have gone through the payroll, but it is too complicated now to change the figures for previous years. The alternative is to charge the reimbursement of your childcare to your director's loan account with the company and not claim it as a business expense. If the balance of your DLA remains in credit, there is no consequence.