Childcare Vouchers: cut childcare costs by £1,000/year Discussion Area

Maybeanotherday

Hello guys
Another problem Im currently trying to work through...

Im putting my little one into childcare at 6months old 4 days of the week.
I have been offered tax free vouchers from work and there is also the option of tax credits.

Ive had a look online at tax credits and there seems to be no dofference from my current award with the details Im putting in...

1) Do you still get a small amount of tax credits if you opt for vouchers?
2) Even if your getting full pay on maternity leave do you declare this to tax credits?
3) I really like a nursery that is £41 per day friends say its very steep but this price includes all meals,milk,nappies,wipes and creams whereas the other nurseries are charging £34 per day just including food.
How many nappies do little ones use a day? milk etc etc is £41 so steep?

I would appreciate any help as my little girl is now 5 and it seems like years since I was considering things like this.

Thanks
Sabrina

daveyjp

1) We do
2) You give tax credits your 'earnings' for the year, they calculate the amount.
3) £41 seems high for West Yorks. They were mid £30s when we looked last year and we pay that now and this includes everything.

Maybeanotherday

daveyjp wrote: »

1) We do
2) You give tax credits your 'earnings' for the year, they calculate the amount.
3) £41 seems high for West Yorks. They were mid £30s when we looked last year and we pay that now and this includes everything.

Thanks that's really helpful!
Im starting to think now that £41 seems to be alot...when eden went full time it only cost £28 but because that was a couple of years ago I wasnt sure how much extra I should be looking at!

sarahsarah

I would look at what else is better about the £41 nursery, maybe they have better equipment (sensory room? outdoor equipment? speical toys) and whether the food is of better quality (some do organic, everything home cooked, some nurseries use a lot of ready made frozen food) and whether the staffing levels are higher and the staff are more experienced.

DaisyFlower

You cant claim tax credits and the childcare vouchers on the same amount so if you qualify for help from tax credits for childcare then its usually the best way to go. Help with childcare from tax credits is based on household income so if you both earn over a set amount this may be why your award hasnt changed and you dont qualify for any extra.

You do still qualify for tax credits help with childcare if you were using a nursery/childminder prior to going on maternity leave - although not sure who would be in childcare if you are on maternity leave as your elder child is of school age.

As for price, depends on how you felt about the nursery - whilst price is important, the overall feel for the place and the staff is very important.

stefejb

http://accorestimator.opp-links.org.uk/ this might help you work out if you're better off with or without vouchers - for me I was better off without as a SP paying about £35 pw on childcare and earning £15,000 but each scheme might be different

HTH

Savvy_Sue

LINKING TO ARTICLES

Hi, Martin’s asked me to post this: There’s an article on the main site you might like to read that gives more information on this subject.

There's also a pre-existing thread discussing how it works so I shall merge you into that.

Maybeanotherday

stefejb wrote: »

http://accorestimator.opp-links.org.uk/ this might help you work out if you're better off with or without vouchers - for me I was better off without as a SP paying about £35 pw on childcare and earning £15,000 but each scheme might be different

HTH

Hi this is the company my work uses...Im confused though as it says salary sacrifice and NIC saving £903.65.
How do I work out which one I'm better off with?
Thanks again

addleclay

Hi

First post etc but i've got a basic question re vouchers etc. Both my wife and I work for a company which use Care 4. We are in a lucky position where we only need a child minder for one day which is working out at £65, what I need to know is if we both surrender enough salary to receive the maximum amout per month (£71) in tax savings are we able to then transfer the vouchers back into salary.

EG I believe we both need to surrender in the region of £248 to gain the maximum tax relief. So does that mean in theory we surrender in total £496 between us and gain and gain an extra £142 back from tax / NI. So every month the pot would be in the region of £538 but with us only needing to spend around £260 to £325 on child care.

So can the balance of of approx £200 then be returned to salary or does it remain as payment as childcare only.

Sorry if waffling or barking up the wrong tree

mandy

Hi Guys,

I have been an ofsted registered childminder for some years now and have never been asked about childcare vouchers,however a new client has recently asked me if i can accept them, i am not to sure how this works do i get paid in vouchers and then redeem the vouchers somehow or do i just need to register to accept them an still get paid cash/cheque, i am hoping some childminders out there will be able to help me

Thanks