Is It Worth It?Tax Credits Calculator

robbsafc

Does anyone know of a Tax Cedits calculator to calculate if it is worth utilising the Childcare Vouchers option. What I am trying to get at is the following. My wife has started using Childcare vouchers, however this has resulted in a substantial drop in Tax Credits. Is there a calculator that would allow me to compare which is more beneficial financially. I want to compare Childcare vouchers and the tax saved against My wife's wages and the additional Tax credits.
If someone could point me in the right direction or advise of the formula necessary to calculate it would be much appreciated.

Many thanks.
Rob.

Sorry I think I confused myself on this one.

wobin

http://www.moneysavingexpert.com/health/childcare-vouchers

from what i can tell on this - for every £1000 vouchers used you are £300 better off. I don't know of any calculator. you could compare you wife's payslip before using the vouchers to after and your tax credit award before and after the vouchers.

[Deleted User]

www.hmrc.gov.uk/calcs/ccin.htm

This calculator will tell you if you are better off using vouchers or getting help from TCO.

robbsafc

I think I just confused myself on this one. Calculating the Tax savings on my wifes wages doing Childcare vouchers this saves us £807 per year in Tax. However doing this has resulted in a decrease in Tax Credits by approximately £2000 per year. They have been overpaying us on tax credits as it has taken 8 months for them to sort out the changes in circumstances, i.e doing Childcare Vouchers (Salary sacrifice). Even adding on the reduction in payments due to the overpayments looks like we'd be better off ditching the Childcare Vouchers.

Rob.

robbsafc

Looks like I'll be ditching Childcare Vouchers then. I thought we were worse off. However the Online Calculator linked by subsoniccoyote confirms indeed this is the case.

Thanks again everyone.

Rob

robbsafc

I was just in the process of writing the TCO a letter just asking them to clarify/explain further their calculations and just noticed this. On the awards notice it has the average weekly childcare costs as £54.92. However they have this figure in there because of a response given to a question in a previous letter from them which asked "What are your weekly childcare costs after your childcare vouchers have been deducted?" This was when they asked for more information on my wife's childcare vouchers. However my real childcare costs are £112.70 per week that i have to pay some are paid using vouchers and the remaining balance by other means. Could this be the confusion?

Rob.