Childcare costs (benefits)

Discussion in 'Accounts & Finance' started by Csills73, May 17, 2019.

  1. Csills73

    Csills73 UKBF Contributor Free Member

    83 0
    Hi All,

    I hope someone can let me know if the employer pays the employee childcare costs for around £56 a week does it count as benefits in kind and does it have to be reported on the P11D?

    Many thanks
     
    Posted: May 17, 2019 By: Csills73 Member since: Oct 1, 2013
    #1
  2. TheCyclingProgrammer

    TheCyclingProgrammer UKBF Regular Free Member

    1,045 217
    I would have thought so, unless there’s a direct contract between the employer and the childcare provider AND this was already in place before the childcare voucher/directly contracted childcare schemes were closed to new applicants and switched to the new tax free childcare scheme.
     
    Posted: May 17, 2019 By: TheCyclingProgrammer Member since: Jul 15, 2014
    #2
  3. Csills73

    Csills73 UKBF Contributor Free Member

    83 0
    Hi,
    Thanks for your answer. There is no contract between the employer and the childcare provider and the employer pays the childcare provider direct. Do I still have to adjust the employee tax code with the amount that she gets for the childcare for the year or is it tax free and just needs to be reported on the P11D?
    thanks
     
    Posted: May 18, 2019 at 2:05 PM By: Csills73 Member since: Oct 1, 2013
    #3
  4. TheCyclingProgrammer

    TheCyclingProgrammer UKBF Regular Free Member

    1,045 217
    If there’s no contract between the employer and provider then the employer is paying the employees childcare bills for them and it is taxable as a BIK.
     
    Posted: May 18, 2019 at 3:21 PM By: TheCyclingProgrammer Member since: Jul 15, 2014
    #4