Nursery vouchers?

flabadabado

Good morning,

Hoping to pick your brains, we've been offered the opportunity to buy nursery vouchers through my husbands company. The saving would be approx £93 as we could buy £243 worth of vouchers and it would cost £150 I think.

We get child tax credit and because we pay almost £400 in child care a month for our daughter it takes us into the level where we get working tax credit.

My question is if we buy the vouchers are we no longer entitled to the working tax credit?

I don't really understand the system, we'd never claimed anything before my daughter was born 10 months ago + I'm paranoid that we'll do something wrong.

Thanks in advance for any responses

Flab xx

DX2

Childcare vouchers and tax credits - better off calculator

Your employer may offer you childcare vouchers (including vouchers in return for a reduction in your pay - known as a 'salary sacrifice') to help with your childcare costs. This may affect the amount of tax credits you can get. This online calculator can help you decide whether - overall - you would be better off taking the childcare vouchers or not.
http://www.hmrc.gov.uk/calcs/ccin.htm

flabadabado

Thank you, looking at this I think we're only allowed the childcare element of working tax credit if we dont buy the vouchers. Looks like we're better off keeping as we are. Many thanks for your response