Childacre Vouchers & Childcare benefit

Rob_tt

Hi

Can anyone answer my question below?

I currently sacrifice part of my salary for childcare vouchers.

As my wife is ill at present she qualifies for 70% towards childcare.

What should i do now, I don't want to totally quit the scheme as changes imposed by the government earlier this year make it not so beneficial as the previous scheme.

Can I reduce my contributions to make up the other 30%

Thanks

Rob

clearingout

I am a bit confused by this - are you and your wife living together? I ask because you state 'she is entitled' rather than 'we'.

Rob_tt

Yes we are living together, 'we' are entitled to it

Poraw

I didnt think you were allowed to claim Childcare Costs from Tax Credits and salary sacrifice for childcare Vouchers at the same time... you can either do one or the other...

Rob_tt

Poraw wrote: »

I didnt think you were allowed to claim Childcare Costs from Tax Credits and salary sacrifice for childcare Vouchers at the same time... you can either do one or the other...

We are not claiming for the childcare yet as we only found out last week, I wanted to be sure of the right thing to do with regards to my salary sacrifice before claiming both if this is possible (or not).

zagfles

You can use both but not overlapping for the same cost. Eg if childcare is £200pw and you pay for £100 in vouchers then you can only claim £100 (and so get a max of £70) via tax credits.

See http://www.hmrc.gov.uk/calcs/ccin.htm