Childcare vouchers without payroll

Single director/employee company paying for childcare vouchers but no payroll

Didn't find your answer?

I should probably know this but I don't and I can't find the answers anywhere:

I have a new client. They do not run a payroll for themselves at the moment. I can see in their accounts that they are paying out for childcare vouchers (presumably the old scheme that is now closed). Ordinarily I see childcare vouchers being handled through payroll as a deduction. In this case there is no payroll.

I think its OK but would really appreciate it if someone could confirm-  to me I think its just an exempt BIK. The payroll element is just a way for payrolling benefits, but is not strictly necessary.

Am I right here?

Thanks in advance

Replies (2)

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RLI
By lionofludesch
08th Jan 2019 11:40

It's a bit of a weird rationale but, no, you don't need to be paid to get childcare vouchers under the old scheme.

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Euan's picture
By Euan MacLennan
08th Jan 2019 16:18

" Ordinarily I see childcare vouchers being handled through payroll as a deduction."

Oh, No - you don't! How can a benefit be a deduction from payroll? What you see is an employee's salary sacrifice in exchange for his employer providing a benefit - which is a pointless exercise for a shareholder director.

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