Cost of Childcare continues to rise
The Day Care Trust have recently published the findings of their 2011 survey of Childcare Costs, and it is no surprise to any working parents that costs are on the up.
Maximise is now on Facebook
Maximise now has a Facebook Page where you can keep up to date with all that is going on.
Parent's FAQs
- A member of my family looks after my children, but I pay them to do it. Can I give the Vouchers to them instead?
Unfortunately, no. HMRC rules state that the Childcare Provider must be registered with an Inspectorate such as Ofsted.
- How will having Childcare Voucher affect my existing benefits
It is worth bearing in mind that if you take Childcare Vouchers it can have an impact on your entitlement to other benefits. This is because the salary sacrifice agreement alters your salary for the period that it is in place.
You should always ensure that your Voucher Order does not drop your salary below the Lower Earnings threshold (for the tax year 2011/12, this is £102 per week), as this can affect your rights to benefits that are based on National Insurance Contributions such as Jobseekers Allowance, and the amount of pension that you receive when you retire. - How will having Childcare Voucher affect my right to Statutory Maternity Pay?
It is worth bearing in mind that if you take Childcare Vouchers it can have an impact on your entitlement to other benefits. This is because the salary sacrifice agreement alters your salary for the period that it is in place.
Some benefits, such as Statutory Maternity Pay, are based on your salary. As your entitlement is to 90% of salary for the first 6 weeks, reducing your salary will have an impact the amount you are paid for those 6 weeks.
- How will having Childcare Voucher affect my Tax Credits ?
If you join a salary sacrifice scheme, it is the reduced salary that will be used to calculate your entitlement to Working Families Tax Credits and Child Tax Credits. If you are currently receiving WTC or CTC you should call them and ask what impact taking Childcare Vouchers will have on the amount of Tax Credits you receive.
- I have two children does that mean I can claim double?
The childcare voucher scheme does not recognise how many children you have, it is purely based on the amount of salary that you are allowed to exchange for vouchers without having to pay Tax and NI.
However, the amount is per person, so if both parents work, then both can claim up to the maximum of £243 per person per month, dependent upon your tax band.
- If I have to sacrifice part of my salary where is the benefit?
When you sacrifice part of your salary, you receive the same amount that you have sacrificed in another way, in this case as Childcare Vouchers. Because these vouchers are not liable for PAYE and NI deductions you save what you should have paid in PAYE and NI. This is why you are generally better off taking Childcare Vouchers.
- Is it easy to change the amount of Vouchers I want?
Your employer will have specified how regularly you can change the amount of your Voucher Order. It is usually every 6 months, or once a year. Your online Account Manager will show the date the next change is allowed, and you can pre-book the change for it to take effect from that date.
- What if I change my employer?
If you change your employer to one that doesn't use Maximise Childcare Vouchers, tell them about the great savings for both the Employer and Employee and hopefully they will decide to join. If not, or if they already use a different provider, don't worry, you will still be able to access your Online Account Manager, and will still be able to use any remaining Maximise Childcare Vouchers to pay your Childcare Provider until they run out.
- What if my Childcare Provider doesn't accept Maximise Childcare Vouchers?
In the event that your Childcare Provider is not already registered with Maximise, then it is quick, easy and free for them to register. All you need to do is give us their details, and we will give them a call. Most Childcare Providers are happy to join Maximise as we make sure that their payments are processed quickly and efficiently, directly into their bank account, saving them time waiting for cheques to clear etc.
- What is Salary Sacrifice?
Salary Sacrifice means that part of your salary is sacrificed for another benefit. When you enter into a Salary Sacrifice Scheme, your employers will ask you to enter into a Salary Sacrifice Agreement. This agreement varies the terms of your employment contract by showing that you have agreed to receive childcare vouchers in exchange for part of your salary.
There is, in theory no actual limit to how much an employee can "Sacrifice", however, in practice it shouldn't allow your salary to fall below National Minimum Wage. - When do my vouchers expire?
Your Vouchers don't have an expiry date however they can only be used until the 1st September after your child turns 15 (16 if they are disabled).
Well, half term is upon us, and it doesn't seem 5 minutes since my little boy was going back to school in September. Like most w...
