Childcare vouchers?

[Pearls18]

I hope it is ok to put this here.

Pllllleeeeassse can someone explain them to me??

Atm we get a really good amount of tax credits because we had a low income last year due to maternity etc, as of April they are getting slashed to the point I think vouchers are going to be better for us but I don't know how they work or how much they will save us. Both my husband and I can get vouchers through our work, how do I work out how much we would save??

And I guess I am right in saying you can't claim child care tax credits if you get vouchers? We aren't entitled to any other TC I don't think as our income is over £26,000k

 

[maryp0ppins]

Childcare vouchers are tax free. Im ofsted registered so i can accept them as payment. Im not sure how it works at the other end sorry. Im sure someone will be along to help you as loads of ppl use them.x

 

[Eternal]

I've always wondered how they work, oh can get them, we don't get any benefits, so childcare has always been too expensive for me to work, I think you just get the vat off, is that right?

 

[lisa9999]

The max you can buy per month is £243 , thats deducted from your salary and paid over to your cc provider. You only actually lose £165 from your salary so you save £78 per month.
Applies to both parents, so you could actually save £156 (if you spend £486 or more per month on childcare that is)

 

[Lellow]

We use childcare vouchers, so ill give you my scenario.

We are not entitiled to tax credits but you can still claim CCV's if you are entitled, just not the 'childcare element' which they will work out for you anyway.

Aymen attends nursery twice a week - 1pm - 5.30pm on a tues and weds.

Our bill for the 2 afternoons a week over the month is £220.

My employers takes the funds straight out of my salary and pays the nursery direct and as it is tax free, they only take out £156 a month so i am saving £64 a month.

Both our employers do CCV's but i dont see the point in us both using them as we pay less than the threshhold anyway, but if your bill is higher then it would be beneficial for both you and your husband to use them as you'll be saving more.

Hope this helps.

 

[Pearls18]

Thank you that makes much more sense than the website (for me anyway!)