Tax credits/ childcare vouchers....

[lisa9999]

Ok so we dont actually get any help towards childcare costs cos our income is too high, but we do get a bit of normal tax credits.

I've been taken on the payroll by my employer now (was on a consultant/ s/e basis before) so in theory I could ask them about childcare vouchers, is that right? Atm we spend £60 a week on childcare.

Would it work out better for me to do this? I dont think you get tax credits AND childcare vouchers do you? Or do you still get normal tax credits?

Confused myself now!

Help. Can someone explain tax credits and childcare vouchers to a numpty please.

Thanks.

 

[Lilysmum17]

Yep get the childcare vouchers, they are deducted from your pre-tax salary to save on tax and ni, for about 240 per month worth you can save v roughly £70 quid, although this is for normal tax i don't know if you'd save more if your in the higher rate tax banding, its doesnt affect normal tax credits, the only rule is you cant claim childcare tax credits AND use the vouchers but as you're not entitled to childcare tax credits it won't be a problem. Also as there a salary sacrifice it technically reduces the income you tell tax credits you earn, so if you ended up buying 240 per month, you'd actually deduct this of your yearly income ie £2800 less income per yr in your tax creds claim, may bump up ur tc's abit ! x hope this helps and not too confusing x