Tax Relief On Childcare Bills! Give Us A Break!

[feelslikeitshould]

When we had our second child, my wife’s firm paid our child care bills directly, we then paid her firm. This was not a subsidised payment from her firm but there must have been a tax advantage as the figure we paid her firm was approximately 20% less than the monthly bill. I am not sure how it worked, but I know the firm didn't lose out so there must have been a tax advantage or an expense claim in the system.

 

I don't understand how that would work the way you described....You could get the firm to take the childcare costs directly from your salary, as it would then be a tax exempt bonus type thing so you would save money that way, as would the firm as they wouldn't pay tax on that amount either. Doing it the other way, kind of retrospectively, could amount to tax evasion in some peoples eyes....

[5-demerits]

When we had our second child, my wife’s firm paid our child care bills directly, we then paid her firm. This was not a subsidised payment from her firm but there must have been a tax advantage as the figure we paid her firm was approximately 20% less than the monthly bill. I am not sure how it worked, but I know the firm didn't lose out so there must have been a tax advantage or an expense claim in the system.

 

I don't understand how that would work the way you described....You could get the firm to take the childcare costs directly from your salary, as it would then be a tax exempt bonus type thing so you would save money that way, as would the firm as they wouldn't pay tax on that amount either. Doing it the other way, kind of retrospectively, could amount to tax evasion in some peoples eyes....

 

Exactly as you said - the fact it was taken out of her salary, so we still paid the firm back.

[Tuna Sandwich]

where do you live if you pay massive tax? i only pay 18%, move to the UK, then you'll see massive tax bills

 

I pay massive taxes because I have made a lot of good decisions in my life. For example, I chose not to further my education but work hard to secure my future. The result was that by the time my school freind left Uni with their HNDs or whatever (and of course their student debts), they came back and worked for people like me.

 

So why do I pay massive taxes? Because I was not stupid enough to get into massive credit card debt, I was not stupid enough to take on a mortgage I might not be able to repay and I do not live beyond my means. The first seven years of mortgage repayments were difficult as interest rates rocketed. My wife and I went without things (no Sky, no Holidays, Beans on toast for tea, etc.). Many people lost their homes. When rates came down I kept my mortgage repayments high and ended up finishing my mortgage 10 years early, and that is why I pay massive taxes. Not because I earn a mint, because I have nothing to claim back.

 

Thieawin makes some excellent points about how highly we are taxed but it goes even further than that as many of our supermarket prices are fixed too (Meat, milk, bread, etc.) all of which goes to make living here more expensive. Personally, I think it is cheaper to live in many parts of the uk than it is here. However, hell will freeze over.....

[Shelly]

When we had our second child, my wife’s firm paid our child care bills directly, we then paid her firm. This was not a subsidised payment from her firm but there must have been a tax advantage as the figure we paid her firm was approximately 20% less than the monthly bill. I am not sure how it worked, but I know the firm didn't lose out so there must have been a tax advantage or an expense claim in the system.

 

I don't understand how that would work the way you described....You could get the firm to take the childcare costs directly from your salary, as it would then be a tax exempt bonus type thing so you would save money that way, as would the firm as they wouldn't pay tax on that amount either. Doing it the other way, kind of retrospectively, could amount to tax evasion in some peoples eyes....

 

Exactly as you said - the fact it was taken out of her salary, so we still paid the firm back.

 

I have heard of this but strictly a NO NO for Government employees - so I'm told - so stuffed again!!! Presumably the taxes I am paying are going to others peoples children's government paid childcare?? I know there are some very good reasons for that but there are also some people who get things paid for by Government subsidies that make my blood boil.

 

Another issue to consider. What about those families who currently rely on grandparents to help them with their pre-school childcare. With the future looking like most of future grandparents are working til 70+ who is going to take up the slack with children needing care and parents and grandparents needing to work. Admit it - something is not right here?