Guest Posted May 25, 2012 Share Posted May 25, 2012 One of our parents pays our childcare fees using ONLY childcare vouchers (no other payment i.e. cash or cheques) their account is currently in credit and they have requested that we pay them back the amount that they are in credit? they will still have fees to pay until the end of august and will continue to pay using only childcare vouchers (the amount they are required to pay is covered by both of them using vouchers) I am unsure whether we are supposed to pay this money directly back to them or not, as obviously they have not paid tax on the amount and the vouchers are only supposed to be used as childcare fees. I am concerned as I had told them to reduce their payments as suspected they may have been deliberately overpaying in order to ‘claim the money back’ from us and avoid paying the tax on their wage. Does anyone know whether this is allowed? Any help would be great. Thank you in advance. Quote Link to comment Share on other sites More sharing options...
Annie-pops Posted May 25, 2012 Share Posted May 25, 2012 I don't know the first thing about childcare vouchers, but I think you are probably right to be wary as this appears to be a roundabout way of redeeming vouchers for cash, I am guessing there is probably something in the terms and conditions about them only being used for the purpose of paying childcare fees. Hopefully someone who knows will be along soon x 1 Quote Link to comment Share on other sites More sharing options...
anju Posted May 25, 2012 Share Posted May 25, 2012 Sounds dodgy to me. I would contact the voucher company and ask them maybe? Quote Link to comment Share on other sites More sharing options...
Fredbear Posted May 25, 2012 Share Posted May 25, 2012 Hi as far as I am aware they are a non cash benefit so I would say no. But if you are unsure contact the childcare voucher company or alternatively look on the inland revenue website for details. Quote Link to comment Share on other sites More sharing options...
SueJ Posted May 25, 2012 Share Posted May 25, 2012 Check the small print with the voucher scheme administrator - I know when I had this situation we were not allowed to refund the client any money - it is up to them to ensure that they don't overpay into the scheme or use any surplus up either with your setting or another registered provider! Quote Link to comment Share on other sites More sharing options...
laura Posted May 25, 2012 Share Posted May 25, 2012 We have refunded the voucher company in the past, we just sent them a cheque Quote Link to comment Share on other sites More sharing options...
Guest Posted May 25, 2012 Share Posted May 25, 2012 We have referred the parent back to their HR dept or the voucher company as their 'point of contact'/agreement is with them. As we see it the parent 'paid' the voucher company, who then paid us; so no reason to have a refund given direct to the parent (iyswim!!) Quote Link to comment Share on other sites More sharing options...
finleysmaid Posted May 26, 2012 Share Posted May 26, 2012 i would contact the voucher company and discuss...imo you shouldn't be refunding like this especially if there is more to pay it should just be an adjustment. Quote Link to comment Share on other sites More sharing options...
narnia Posted May 26, 2012 Share Posted May 26, 2012 NO, you don't refund the parent. We had one who left to go back to South Africa and who cam ein and demanded that we return the excess paid to us. When we phoned the voucher company, they told us under no circumstances should we return money to parents as they haven't paid tax on it and it would be illegal to give it back. Quote Link to comment Share on other sites More sharing options...
Panders Posted May 26, 2012 Share Posted May 26, 2012 One of my parents mentioned this a while back - her daughter is now funded, but has realised she has money tied up in the scheme - so what does happen to the money? Quote Link to comment Share on other sites More sharing options...
narnia Posted May 26, 2012 Share Posted May 26, 2012 (edited) she has to let her employer know and they will have to sort it with Inland revenue.Then she will get a portion of it back, less tax Edited May 26, 2012 by narnia Quote Link to comment Share on other sites More sharing options...
Guest Posted June 22, 2012 Share Posted June 22, 2012 we had the same issue last year and were told the same as Narnia the money has to go back to the voucher company, Parent was not happy but that the rules Quote Link to comment Share on other sites More sharing options...
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