Childcare vouchers explained
If you have never had UK Childcare Vouchers explained to you, then this page should address any queries that you may have. If there are any Childcare Vouchers Scheme related queries that you would like to have explained further, then please give us a call.
Employers that operate a Childcare Vouchers Scheme provide a valuable service to their employees. Not only does this service that sets them apart as a caring and forward thinking employer, but it is also financially beneficial for the company concerned. If your employer is willing to provide you with Childcare Vouchers you can pay for them as part of your wages. You sacrifice part of your wages in return for a similar value in Childcare Vouchers. If your employer has not explained how the Childcare Vouchers Scheme works, then it is probable that we can help.
Childcare Vouchers Explained
Before you can benefit from Childcare Vouchers, your employment contract will need to be updated with the inclusion of a signed agreement, which confirms your acceptance of the salary sacrifice.
The employer does not pay National Insurance on the amount agreed, which provides the employer with saving for each employee that is a member of the Childcare Vouchers Scheme. And the employee pays no NI or tax, which means that they can make significant savings. Call us on 0845 0945 804 to find out exactly the level of savings that may be available if you join a Childcare Voucher Scheme.
Child Tax Credits and Working Tax Credit
WTC amounts are dependant on a number of factors including the number of hours worked, how many children you have and whether you pay any eligible childcare costs. Choosing a childcare vouchers scheme may have an impact on your eligibility for CTC.
Childcare Vouchers or Tax Credits?
- Families will always benefit from taking a tax and NI free voucher if it is offered to them on top of their salary.
- Families will generally benefit from a childcare vouchers scheme when the amount of their qualifying childcare costs are greater than the current childcare limits.
- Generally, families who are receiving tax credits at the family element or less when they are claiming for the childcare element in Working Tax Credit will gain from claiming the tax and NI exemption.
- Families receiving tax credits at a level greater than the family element will not normally gain from claiming the tax and NI exemptions unless the person in the Childcare Vouchers Scheme is a higher rate tax payer.
- Families receiving Childcare Vouchers from their employers cannot then claim the childcare element of Working Tax Credit on the same costs.
Call Early Years Vouchers NOW and have Childcare Vouchers explained to you in more detail.
Tel: 0845 0945 804
Childcare Vouchers Explained by Early Years Vouchers.