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Post Info TOPIC: Free Childcare


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Free Childcare
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Hi

A friend works in a pre-school and is in dispute with her employer about unpaid holiday pay. 

In response to her taking it up via ACAS, the employer has said that my friend could be liable

to tax and NI on undeclared income because her son was provided with free childcare whilst my friend

was working in the nursery. 

 

I have looked into it and I think the provision is exempt from Tax & National Insurance as it meets

all the criteria but before I tell my friend I'd like to hear someone else's opinion.


Would be grateful for some reassurance !

 

Eunice

 

 



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Eunice Cubbage



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Hi. I read your question as, Your friend is a worker at a nursery, her child attends the same nursery? If this is an available option for all staff, then yes it is exempt.

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If she works there and the employer believes she should pay tax and NI then presumably they have failed to produce the necessary P11D? They can't have it both ways.

From memory I believe if there is no marginal cost or loss of income to the employer for providing a service for free then no P11D is necessary and this can be a 'free' benefit, e.g. if you run a bus company your costs are going to be the same whether an employee gets a free ride or not, so unless your bus is always full with paying customers and the employee is not taking up one of those spaces, you don't need to charge.

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Rob
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Hi John, yes, she works in a nursery and her son has a free place there.

My friend was the only staff member who needed to take her child with her,
So I don't really know if the arrangement was open to all employees.....

Thanks for the reply!

Eunice

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Eunice Cubbage



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Thanks for your thoughts, Rob.

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Eunice Cubbage



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HI,

Yes as Rob says, they can't have it all ways. The employer can't decide after the fact to alter the rules and goalposts to suit themselves.

It's the employers responsibility to fill in a P11D - not the employee.

I stand by my initial post / answer.

Is there any mention of free childcare within her work contract?

I know of a few bus drivers who are 1) Given the option to catch a 'works' bus before their shits begin (Only the earliest of shifts)
2) Given free travel outside of work- to all employees.

All free and without recourse.

I think it's fair to say ' a lot' of it is down to whether or not it is available to all members of staff, and not a select few.

I'd check through the workers contract -












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Johnny  - Owner of an overly-active keyboard. 

A man who can read, yet doesn't, is in no way wiser than a man who can't.

 



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I don't envy the driver of the 'works' bus Johnny...must smell a bit I guess!

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Rob
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abacus12345 wrote:

HI,

Yes as Rob says, they can't have it all ways. The employer can't decide after the fact to alter the rules and goalposts to suit themselves.

It's the employers responsibility to fill in a P11D - not the employee.

I stand by my initial post / answer.

Is there any mention of free childcare within her work contract?

I know of a few bus drivers who are 1) Given the option to catch a 'works' bus before their shits begin (Only the earliest of shifts)
2) Given free travel outside of work- to all employees.

All free and without recourse.

I think it's fair to say ' a lot' of it is down to whether or not it is available to all members of staff, and not a select few.

I'd check through the workers contract -











Oh Rob, you gave me the giggles this morning, especially having to read it three times to see the faux pas.  I had to capture it in case Johnny decided to edit it (if he had, then you mightve beenseen as, not racist, what's the word, bus driver-ist! Lol). 



-- Edited by Cheshire on Tuesday 23rd of February 2016 08:51:20 AM

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



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Cheshire wrote:

Oh Rob, you gave me the giggles this morning, especially having to read it three times to see the faux pas.  I had to capture it in case Johnny decided to edit it (if he had, then you mightve beenseen as, not racist, what's the word, bus driver-ist! Lol). 


 Ah, drat, missed that first time round lol.  



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



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Whooooooops!!!!

 

P.S 

I would have edited the post, seems pointless now with these lot lol.

 

Well spotted Rob smile



-- Edited by abacus12345 on Tuesday 23rd of February 2016 09:54:55 PM

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