A single parent working for the NHS on Covid wards has laid bare the eye-watering cost of childcare faced by health heroes after receiving a shock tax bill.
The key worker revealed they got a bill of more than £3,000 after the emergency childcare they used during the pandemic was classed as a 'benefit in kind' by HMRC.
The parent-of-three, who works at the Belfast Health and Social Care Trust, said they feel "deflated" and have been plunged into financial hardship over the bill.
The health service staff member only learned about their bill after checking their HMRC profile "out of curiosity"after seeing a news story last week about other workers hit by the bills.
The Northern Ireland parent, who asked to remain anonymous, told Belfast Live they went online to check if they were affected too - and were shocked to discover they had been taxed £350 on top of regular monthly deductions.
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The worker said the emergency childcare offered by the Belfast Trust solved a big problem they had been having when working at the start of the pandemic.
They said: "My childcare would have been provided by in-laws before Covid. I went into Covid wards and my in-laws couldn't take my children anymore as they were shielding.
"An email went around offering free childcare due to the pandemic so I contacted them and it was set up within a week for me. They went into childcare from 7.30am to 5pm four days a week and this went on from April to December 2020 so I could attend work.
"At the time I remember getting the phone call to tell me this was granted to me, I cried to the girl on the phone with happiness because it was my problem solved.
However, the worker said they "couldn't understand why" a "huge amount of tax" was being taken off them all of a sudden.
They continued: "I looked further into the app to discover they changed my tax code. They said the Belfast Trust gave me childcare vouchers so in turn I owe £3,380 in tax to them. They're calling it a benefit in kind.
"I'm struggling, £350 has been taken this month on top of my own deductions which has left me literally enough to cover my bills. They offered me food vouchers on Monday and nobody has told me how I access them."
DUP councillor Nicola Verner said she was "speechless" when the health worker first contacted her with this issue.
She added: "Yet again, our amazing nurses who worked so tirelessly on the front line and in many cases, who made enormous personal sacrifices are placed in financial hardship.
"I hope common sense prevails and this is rectified without delay. The stress this is causing is unacceptable and needs addressed urgently."
A letter dated May 27, 2020 shows staff were told a charge for childcare would become applicable from June 8, 2020.
It said there would be "no effort to retrospectively charge" for childcare in April and May but a charging model was being established and would come into effect from June 8.
The letter also stated "free childcare is regarded as a taxable benefit" but on May 28, 2020, another letter was released to "offer reassurance".
This letter promised the the Belfast Trust's position was that there would be no financial detriment to staff linked to to childcare costs.
The Trust said staff-members who did not have any personal childcare costs or expenditure pre-pandemic- for reasons like family members looking after their kids - would not be charged for the childcare.
In a statement to Belfast Live, the Belfast Trust said it is outside of their authority to settle the tax liabilities of their staff.
However the Trust said it had explored all possible tax exemption options for childcare places paid for on behalf of staff.
The statement adds that when no exemptions were available, the Trust submitted a request for approval through the Department of Health to the Department of Finance, to enter into a PAYE Settlement Agreement with HMRC for the period April to July 2020.
A spokesperson for the Trust said both departments had agreed.
They added: "On this basis and for the period of April to July 2020 only, Belfast Trust as an employer was granted the authority by HMRC to pay the resulting tax and National Insurance contributions on this taxable benefit on a staff member’s behalf. However Belfast Trust does not have the authority to pay taxes and national insurance contributions beyond that period."
The HMRC said it had put a number of easements in place during the Covid pandemic, which included an agreement where employers would be able to pay the tax for their employees for Covid-related benefits.
