Hello, how do I account for childcare fees in Quickfile?
No salary is taken from the Ltd company so we have no PAYE or payroll. Childcare is paid directly from the company account to the childcare provider.
Childcare is not an allowable business expense as far as I am aware, there’s some clarification here:
http://businessplusbaby.com/2012/07/09/childcareas-a-business-expense/
If you’re paying for childcare costs directly from the Limited company you’d need to either categorise it as a dividend or director loan. I would recommend clarifying this with your accountant.
Really, I was advised this was ok under the childcare voucher scheme - How do Childcare Vouchers work for contractors running their own limited company?
Contractors simply source an approved childcare provider and arrange for their own limited company to pay the childcare provider directly. Doing it this way means the company receives tax relief on the payments which helps reduce your companies corporation tax bill.
Im thinking I would log as a BIK, if so where do I find this category?
thanks
I just had a chat with our accountant, it would seem childcare vouchers need to be claimed through the PAYE system. There’s a similar post here that may help:
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