Childcare vouchers

[smallginger1]

Anyone know anything about this?

I have been trying to work out if I am better off taking childcare vouchers from my new job (and my partner from his) or not. I have been on the HMRC website and used their Tax credit calculator and their 'Am I better off taking vouchers' calculator but both give me stageringly different results for the amount of tax credit I will receive.

Does anyone know which is likely to be more accurate? The helpline doesn't seem interested in helping me with my hypothetical income (last couple of years are not an accurate representation of our family income going forward).

Any help gratefully received.

 

[clairelou44]

It depends how much tax credits you would be entitled to

 

[smallginger1]

The tax credit calculator suggests I would be getting around £300ish CTC and no WTC. This has always been fairly accurate with the amounts I have been awarded.

The other calculator suggests I would lose £1000 CTC if I were to claim the vouchers.

I suppose then even if I were to lose £300 CTC I would still be gaining up to £900ish in Tax and NI so it would be worth it.

 

[nickibrum]

i thought you are always better to use childcare vouchers as you end up not getting tax/ni on the amount.
e.g. you have 1000 and would get taxed approx 300 = 700 in your bank account
if you have the 1000 in vouchers then it means your 300 up

these are just figures i pulled out my head to make it easier not actual figures!

 

[MrsRH]

The tax credit calculator suggests I would be getting around £300ish CTC and no WTC. This has always been fairly accurate with the amounts I have been awarded.

The other calculator suggests I would lose £1000 CTC if I were to claim the vouchers.

I suppose then even if I were to lose £300 CTC I would still be gaining up to £900ish in Tax and NI so it would be worth it.

is this per month or year??

if a year, you are better taking the child care vouchers. assuming you and your OH are basic rate tax payers, with both of you taking the vouchers ,you will save £1866 in tax and NI per year ie that's in your pocket as extra!

hth
x

 

[smallginger1]

These figures are per year.

The thing that confused me was how much I would stand to lose as CTC. Why do they have to make these things so complicated!

I will investigate further with my employer and hope that the nursery takes the voucher scheme I am offered!

 

[MrsRH]

These figures are per year.

The thing that confused me was how much I would stand to lose as CTC. Why do they have to make these things so complicated!

I will investigate further with my employer and hope that the nursery takes the voucher scheme I am offered!

I guess it's a decision between gaining £300 in CTC and getting an extra £1866 via less tax and NI contributions????

a no brainer if you ask me!!!

as long as the nursery is registered (eg ofsted) and approved, they WILL take the voucher scheme, they have to!!