Accepting childcare vouchers

[Anacrusis]

Hi,

I'm new to childminding & have been asked if I can take childcare vouchers. I've found some information online and it looks like it wouldn't be too difficult to do but, I'm wondering if there's more than one company that run the voucher scheme & if anyone knows if one is better then the other?

I can't find anything on the govenmnent websites for childcare providers, only for parents!

[munch149]

The parents employer sorts it all (did mine anyway) and the parent will prob just bring you a form to fill in. I quite like them as get a fixed pay date. I charge in arrears tho and if I'm off sick I've had to give money back which is weird to me and can be a pain

[Daisy1956]

I have three parents using three different voucher providers, all are slightly different in how they work but up until now I haven't had any problems with any. I like it, all paid into my bank account when it should be and no problems.

[CLL]

I just ask parents what provider their company uses then go on their website to apply. You then have to send them a copy of your reg cert. there are loads of different providers so don't try to find out any info until you know which one they use.

[rickysmiths]

The parents employer sorts it all (did mine anyway) and the parent will prob just bring you a form to fill in. I quite like them as get a fixed pay date. I charge in arrears tho and if I'm off sick I've had to give money back which is weird to me and can be a pain

Are you aware that you can not return money paid via vouchers directly to the parents? Doing this equates to Fraud because the money paid to you by the voucher company has been taken from the parents salary before tax and NI is paid. If you have to refund because you have been off sick etc then the best thing is for the parent to pay you less in the month after the sickness rather than you refunding money to them. This is the way I have always done it.

[bunyip]

This is just additional information on top of the excellent advice already posted.

[This is a copy/paste of an old post, so apologies to members who've seen it before.]

I accept vouchers from 2 companies already and signed up to 2 more last week for September starters. I was nervous about it at first (I like to be in control) but regard as really easy now.

As mentioned, it can take a little time to set up cos although some of the process can be done online, the voucher company won't activate your account until they've seen a copy of your CM certificate. Mind you, I just found one company doesn't ask for the certificate, as they can verify my details directly with Ofsted. I've no idea why more voucher providers don't do this. (But then I've no idea why Ofsted ask me 'security' questions when I 'phone them cos the information they want is not hard for anyone to get hold of.) I digress....

The parent needs to tell you exactly which voucher provider they'll be using. To avoid confusion (and registering with the wrong company) insist that she provides the contact telephone, email and website url. (ie. Make sure it's her fault if anything goes t1t5up.)

You should set payment-in-advance terms the same as for any other client, and it's up to parent whether s/he settles the 1st month by cash or voucher. But it should be on time without any excuse about the vouchers. If her employer has a voucher scheme, they can set up her end of things ahead of time to be ready for when it's needed. Granted, if she's paying you out of her very first pay packet then she's maybe not had time to get the voucher ball rolling. But the essence of it is: lack of planning on her part should not constitute a crisis on your part. By accepting the vouchers, you are saving her money. There's no reason why saving her money should inconvenience you or entitle her to more favourable terms than any of your other clients.

A few things I wish I'd known before I accepted vouchers for the first time (and I'm assuming you're having the whole thing done automatically, not dealing with 'paper vouchers'):-

1. Talk to the voucher company. They know everyone has a first time, and it's in their interests to help you have a hassle-free experience. They do a highly unspecialised job (taking money from one account and putting it in another - not exactly mind taxing stuff ) so they've already worked out that they only compete with one another on who can offer the best customer service.

2. When you receive an email saying the vouchers have been transferred to your account, it does not mean the cash is in your bank yet. Since any delay in clearing is usually down to the recipient's bank, remember that part is not the parent's fault. It's up to the parent to get the vouchers into your voucher account by the due date, but the rest isn't her problem.

3. Check your settings. You should ask the voucher company to make sure their computer searches your account for vouchers and transfers them to your bank account every day. I know this sounds crazy, but a lot of CMs make the quite reasonable mistake of setting it to check once a month. That can mean waiting a whole month to get hold of the cash if the computer is 'looking for' a voucher payment the day before it arrives - because it won't start 'looking' again for a whole nother month. This can happen with at least one of the voucher companies.

4. Never, ever, ever refund a voucher payment in cash. Technically it's tax fraud and money laundering. If mum overpays by vouchers, then you can carry over the credit to the next bill or contact the voucher company to transfer the credit back into her voucher account.

5. You are not responsible for how mum manages her voucher account. If she pays too much of her salary in and can't get it out: her problem, not yours.

6. Don't take any BS from mum about the voucher company delaying transactions. Parents sometimes try it on and say "oh I expect the voucher company gets delayed by the bank holiday", etc. I got my December vouchers credited on Boxing Day. In fact, they frequently draw down the money from the employer's payroll several days before the parent's due pay day. I tell my voucher-paying parents that I expect the credit on time and no arguments. First time they're late I'd issue a warning, second time and I refuse to accept anything but cash or BACS from the parents. They know the vouchers save them money, so none of them have messed me about so far.

Hope this helps.

[munch149]

Thanks for telling me about refundin money i never knew as have only started using them myself. I will

[munch149]

I will carry it over or ring company in future

[oxfordshirecm]

I need to follow this advice with my parents who are always at least 10 days late with the vouchers

[Anacrusis]

Thanks everyone for the advice xxx

[winstonian]

I am registered with 4 voucher companies. I have found them all really straight forward and much prefer it to cash or cheques.

[Kirstylob]

Brilliant advice Bunyip! I am registered with 4 different companies and its all good every month. I also get an email to tell me that the voucher has been transferred so I don't need to keep checking my bank account.

[mmichellled]

Hi

I am just looking into this too. My hourly rate is £4 will the vouchers pay this or is it a set amount? If it is less I assume I can just get the parents to top up?

I think it might be two different voucher companies one from Dad's work and one from Mum's

Thank you :-)

[Jods]

I accept vouchers from two sets of parents, different companies x never had a problem, my parents make the difference from their own pockets, which is where they get refunded from if I am off sick x

[jackie 7]

If the parent doesn't have enough in their account they can top up your payment. It is easy. I am with so many companies I can't remember who with