One of my contractor clients has applied for the new Tax Free Childcare account.
They have run into a problem in that they have been told by HMRC that they do not qualify as they have not been reciving any salary and have not done so since April (the last RTI filing) and so it looks like they are not working. HMRC have been told that this is simply because the £8,164 salary is on an annual pay period. However they are not having any of it. Looking at the regulations it talks in terms of salary 'received' in a 3 month period and so it appears that annual pay periods have not been contemplated.
In order to resolve this for the client we would need to start running the payroll monthly rather than annually - but I really don't want to start running all our contractor payrolls monthly.
Anyone come across this and found a solution?