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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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.
" 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.