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Childcare costs - expenses?

Can childcare costs incurred only when working non-contracted hours be paid as expenses?

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A part-time employee may be required to make overseas trips up to three times a year which will extend beyond their normal working hours. In order to make these trips they will need to put in place temporary childcare arrangements - estimated to cost around £65 a day - on the days they do not normally work.

My logical brain concludes that this is an expense incurred wholly and exclusively so that the work can happen - and I think I would be happy to pay this in expenses, however I know that normal logic doesn't always apply with HMRC. Reading the guidance on childcare costs, it seems to not apply to this type of situation and I had started to get lost with knowing what to search for to find an answer on the HMRC website.

Am I being sensible or have I missed something?

Replies (8)

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By Wanderer
19th Dec 2018 12:07

Klandrews wrote:

My logical brain concludes that this is an expense incurred wholly and exclusively so that the work can happen - and I think I would be happy to pay this in expenses, however I know that normal logic doesn't always apply with HMRC.

Surely it is an expense to put the employee into a position to perform their duties and not an expense incurred wholly, exclusively & necessarily in the performance of their duties.
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By Matrix
19th Dec 2018 12:41

The employer can reimburse the costs if they wish but the reimbursement would be a taxable benefit so you would have to gross it up to put the employee in the same position.

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By Accountant A
19th Dec 2018 13:34

If you don't understand the relevant tax law, you shouldn't be advising clients on it. As tax goes, this is very basic stuff.

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Replying to Accountant A:
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By Matrix
19th Dec 2018 13:56

Be nice, Kate has not asked a question for 11 years so I expect she is coping very well advising clients.

Sometimes they really push us with silly questions and when we are busy (like, now) we post on here without thinking it through properly.

Please don't put people off posting.

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RLI
By lionofludesch
19th Dec 2018 14:27

It's not for me - but the employee needs to get one of these new childcare schemes set up. At least the government would chip something in.

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Replying to lionofludesch:
By Duggimon
19th Dec 2018 15:13

I thought they were no longer set up by the employer? Has it changed again?

I thought it was a fancy new account where you put in up to £8K and the government sticks in 25% on top?

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Replying to Duggimon:
RLI
By lionofludesch
19th Dec 2018 15:21

Duggimon wrote:

I thought they were no longer set up by the employer? Has it changed again?

No. That's why I said the employee needs to do it.

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Replying to Duggimon:
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By Paul Barclay
20th Dec 2018 11:17

All down to the employee now. Works quite well once setup but can be an absolute pain getting there.

The amount of technical issues I encountered was insane - and the IT support team never called back as they promised 3 times....

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