Employee Savings

 

Employer

Employee savings

For new 20% tax payers joining on or after 06/04/2011 and employees already in a scheme before 06/04/2011, the savings are as follows

  • new 20% tax payers save £77.76 per month, or £933 per annum
  • existing 40% tax payers save £102.06 per month, or £1225 per annum
  • existing 45% tax payers save £114.21per month, or £1370 per annum

For employees joining on and after 06/04/2011 the savings have now changed for higher rate tax payers

  • 40/45% tax payers save £51 per month, or £623 per annum (Maximum Tax and NI free allowance of £28/25 per week, £112/100 per 4 weekly and £124/110 for monthly paid).

Note - from 06/04/2011 any employees that were in a scheme before 06/04/2011 that subsequently failed to take the benefit for a continuous 12 month period will fall into the new tax allowances and will need to have a 'basic earnings assessment' carried out by the employer. For instance, a 40% tax payer would lose savings of £623 per annum - you can see the effect of having childcare vouchers on Tax Credits by following this link to the HMRC site - Tax Credits calculator.

Or better still, just call our team now and we'll talk you through it.

Call us on 0800 088 7315

 To see savings you can make as an employer, click here