The RG Childcare product has been designed to avoid the need to cancel or refund Childcare Voucher orders. Our system includes a simple and straightforward offboarding process for employees who no longer require or are eligible for Childcare Vouchers. And, with our huge range of registered carers and activities that Childcare Vouchers can be put towards, there are plenty of ways for parent employees to spend their vouchers.
However, we understand that sometimes things happen that even the best-laid plans can't account for.
The rest of this article will explain the process should an employer need to cancel or refund any Childcare Vouchers on behalf of an employee.
Occasionally a case will arise where a member of staff will leave a company suddenly. If this occurs between the approval date and the company payday, this may result in having approved vouchers for someone who will no longer work enough hours to pay for them.
As long as the vouchers have not already been spent, we are able to cancel them, even if they've hit the member's RG Childcare account. We simply recall the vouchers and then either issue a credit note to the employer or apply the balance against their next Childcare Vouchers order.
To request a cancellation, contact email@example.com
Under normal circumstances, HMRC says that Childcare Vouchers are non-refundable, and this is stated in the Variation of Contract that employees sign when they join.
However, the law does make allowances for extraordinary circumstances. Here's what the HMRC website says about it:
"Exceptionally a childcare voucher may be cashed. An example of when this might occur could be the death of the child for whom childcare vouchers are provided. As the primary purpose of the childcare voucher is to pay for childcare services not that it is exchangeable for cash, the voucher may be accepted as a non-cash voucher. If the voucher is exchanged for cash, then the employer must apply PAYE tax and NIC to this cash payment."
If an employee requests a voucher refund, it is at the employer's discretion to decide if the request is suitably exceptional.
If the employer decides to honour the refund request, they should contact firstname.lastname@example.org so that we can begin the refund process. The value of any vouchers will be recalled from the parent employee's RG Childcare account and credited back to the employer organisation so that they can process the cash refund to the employee through payroll (subject to tax and NI, as explained above).
More information on this topic can be found in this section of the HMRC website