Paying parents back money ...

[Velleity]

Have parents (after-school care) generally pretty easygoing with them and said they don't have to pay me if they go on holiday so they've said that they are going away two weeks next month and can they pay me anyway - they pay with childcare vouchers the same amount each month - and can I give them two weeks money back as a cheque to refund this overpayment. I think I'm alright with doing this, but is there any issues with this that I am not considering? They'll take about four more weeks holiday this year so don't want to agree to something and then change my mind later. Thanks!

[BuggsieMoo]

You cant do this as they get a tax allowance on the vouchers. The best you can do is keep it as a credit off a future bill - you cannot issue a refund to them for the vouchers. This needs to go back to the voucher company x

[Velleity]

Hmm .. I texted to say I couldn't give them a cash refund and she said her husband will talk to me tomorrow lol .. I just know they are going to try and talk me into it. Not sure what I will say to them.

[Velleity]

It says on the voucher website:

16. What can I do if a parent pays me too much?
You can carry the credit forward to your next invoice or credit the amount they have paid via other means

I'm not sure what this means. What are 'other means'? Does that mean I -can- give them cashback?

[uf353432]

You must not give the money back to them direct - its classed as fraud if you do. The best thing is for you to hold the money on account for next month and they amend their voucher contribution through their work for 1 month, it was very easy to do through payroll when I used vouchers with my childminder.

[sarah707]

The advice you are being given is right.

The reason is that the vouchers give tax breaks on the parents salary - so the money must be used for childcare.

Hth :D

[Velleity]

Thanks all. Hate things like this. Hope they don't try to convince me tomorrow as I know I have to say no now.

[Mouse]

It says on the voucher website:

16. What can I do if a parent pays me too much?
You can carry the credit forward to your next invoice or credit the amount they have paid via other means

I'm not sure what this means. What are 'other means'? Does that mean I -can- give them cashback?

I would phone the voucher company tomorrow for clarification.

The way it works is that parents aren't taxed or NI'd on any money they have in childcare vouchers, as long as it goes towards paying childcare fees. If you give them the money back as cash you they will have had earnings without paying tax & NI on it.

To cover yourself, check it out before you agree to refund any money.

[rickysmiths]

You would be committing Fraud if you did this because you would be giving the parents money they haven't paid tax and NI on.


In a word no you most certainly can't do this. I must confess I make this very clear when parents first join me so it won't be a shock when I refuse. :thumbsup:

[Velleity]

In a word no you most certainly can't do this. I must confess I make this very clear when parents first join me so it won't be a shock when I refuse. :thumbsup:




Living and learning!
Will know to tell parents this next time.
Thanks for information. Feel more confident about speaking to them tomorrow :)

[francinejayne]

I refunded money to parents the other year when I ended their contract and they had overpaid me. Mum used a different voucher company to Dad, so I had to refund the money through 2 different companies. It was very straight forward to do through both of them - give the company a ring and you just do a bank transfer from your end - they deal with actually giving the money to the parents.

You must not give them money back directly as said above!

[rickysmiths]

I refunded money to parents the other year when I ended their contract and they had overpaid me. Mum used a different voucher company to Dad, so I had to refund the money through 2 different companies. It was very straight forward to do through both of them - give the company a ring and you just do a bank transfer from your end - they deal with actually giving the money to the parents.

You must not give them money back directly as said above!

Thats right it is quite simple to do I just sent a cheque.

[The Juggler]

Hmm .. I texted to say I couldn't give them a cash refund and she said her husband will talk to me tomorrow lol .. I just know they are going to try and talk me into it. Not sure what I will say to them.

tell them you can't do it as you'll be committing fraud. tell them they can either bank the money with you or you can send a cheque back to voucher company :thumbsup:

[Bridey]

tell them you can't do it as you'll be committing fraud. tell them they can either bank the money with you or you can send a cheque back to voucher company :thumbsup:

I agree - and have returned money to voucher companys before. They are naughty asking you. Be firm.

[miffy]

Hmm .. I texted to say I couldn't give them a cash refund and she said her husband will talk to me tomorrow lol .. I just know they are going to try and talk me into it. Not sure what I will say to them.

Put the "blame" firmly at the Government's door - it is nothing to do with you, those are the rules - if the money is not used for childcare then tax and NI have to be deducted.

Good luck

Miffy xx