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Refunds where paid with childcare vouchers


kiddywink
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We have a parent who has been paying us monthly with childcare vouchers, their circumstances have changed and they have withdrawn their child from us.

 

As a result they are in credit, however, I have told the parent that we are not permitted to refund to the parent where payment has been made by vouchers because they are purchased before NI & Tax and that he will have to contact his voucher provider to discuss the situation.

 

He is not very happy with me!

 

Has anyone had this situation before and were you able to send a refund to the voucher company? The parent paid a small amount by cheque when they first started, so I can return that amount, but it would still leave a fair bit owing.

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You have to return the vouchers through the Voucher company so that tax can be paid if necessary!! You can't pay back to parent as it has been exempt from tax and therefore needs to go back through the tax system or to pay another provider!!

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You have to return the vouchers through the Voucher company so that tax can be paid if necessary!! You can't pay back to parent as it has been exempt from tax and therefore needs to go back through the tax system or to pay another provider!!

 

I realise that I can't pay the parent, I was just wondering if anyone had ever refunded via the voucher company and how they went about doing it. Your comment "or" to pay to another provider is interesting, maybe I would be permitted to pass the money onto the new nursery.

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Sorry I mean't that the voucher amount hast to go back to the voucher company who can then either forward to the other setting or send it back via the parents wages so that the parent pays tax on it!! Long winded I know!!!

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We've had to do this once or twice. I emailed the voucher company and asked them how they wanted me to return the money to them. From memory one gave me bank details to do a bank transfer and one deducted it from a future payment for a different child.

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When this happens, we transfer the funds by BACS back to the voucher company with the parents account number as a reference and send them an email explaining. Its up to them to sort it out with the employer then. (I still have £25 in my childcare vouchers account which I've never got round to claiming back - and my daughter is 16!)

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