Backdating childcare vouchers hmrc

15 Jul

No VAT is to be levied on the supply of vouchers to employees as the supply of childcare is VAT exempt.HMRC has issued guidance in - Guidance for employees and childcare provisions by employers including childcare vouchers, directly contracted-out childcare and workplace day-care or nurseries.But a claim may generally only be backdated by a maximum of 31 days.Prior to 6 April 2012, the backdating period was 93 days.This will reduce the income that is considered for the basic earnings assessment, which may increase the amount of vouchers you are entitled to take.For more information on changes to childcare vouchers and whether your maximum voucher allowance will be affected, please speak to your HR team.We are not tax advisors and you should always make sure that your accountant verifies that you are reporting correctly. The information provided on salary sacrifices cover their interaction with other forms of non-cash benefits, cash benefits and allowances including statutory maternity pay, statutory sick pay, job seeekers allowance, state pensions, working tax credits, child tax credits, maternity allowance, incapacity benefits, and other income-related benefits.

Prior to 6 April 2012, refugees had 3 months from being awarded refugee status to inform HMRC and receive longer backdating.

A recent clarification regarding the input and output tax with the provision of childcare vouchers has been issued by HMRC.

From 01/01/2012, input tax charged on the administration fees of commercial voucher providers will no longer be recoverable.

Some people will be paying back two overpayments, one via ongoing recovery and another via direct recovery.

This often happens where there is an overpayment on an old claim, and a new overpayment on a current claim.