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Childcare vouchers/tax credits?
caz246
Posts: 214 Forumite
Hi,
I have recently requested to reduce my hours to 30 per week, however my childcare fees will remain the same. I currently pay £850 per month for my son to attend nursery full time. My partner and I receive some help from tax credits as our income was low last year.
My employer has a salary sacrifice scheme meaning I could get up to £243 per month in childcare vouchers. I understand from reading up on HMRC and turn 2 us website that you are better off claiming tax credits if you are eligible but there are special circumstances that you can do both for example if you pay more than £175 per week (which we do) in childcare fees. I tried the online calculator and it shows that we would save around £800 per year due to the reduced tax and NI I would be paying but I am always wary of these not being accurate. I tried the calculator on the website for the scheme my employer uses and it showed a saving of arounf £60 for the year? So I'm slightly confused about what is correct.
My question is does anyone have any experience of receiving childcare vouchers and also help towards their childcare with tax credits? My salary will reduce with my reduction in hours so any pennies I can save, even if it's only a few £s would be welcomed
I have recently requested to reduce my hours to 30 per week, however my childcare fees will remain the same. I currently pay £850 per month for my son to attend nursery full time. My partner and I receive some help from tax credits as our income was low last year.
My employer has a salary sacrifice scheme meaning I could get up to £243 per month in childcare vouchers. I understand from reading up on HMRC and turn 2 us website that you are better off claiming tax credits if you are eligible but there are special circumstances that you can do both for example if you pay more than £175 per week (which we do) in childcare fees. I tried the online calculator and it shows that we would save around £800 per year due to the reduced tax and NI I would be paying but I am always wary of these not being accurate. I tried the calculator on the website for the scheme my employer uses and it showed a saving of arounf £60 for the year? So I'm slightly confused about what is correct.
My question is does anyone have any experience of receiving childcare vouchers and also help towards their childcare with tax credits? My salary will reduce with my reduction in hours so any pennies I can save, even if it's only a few £s would be welcomed
0
Comments
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If you are paying FT nursery costs, why have you reduced your hours?0
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If you are paying FT nursery costs, why have you reduced your hours?
This is irrelevant to my question, but I wish to spend more time with my son as I am currently away from him from over 10 hours each day due to my commute. I will not gain any extra in tax credits, I have chosen to take a reduction in wages to do this. I only want to know if taking advantage of my employers salary sacrifice would be beneficial.0 -
This is irrelevant to my question, but I wish to spend more time with my son as I am currently away from him from over 10 hours each day due to my commute. I will not gain any extra in tax credits, I have chosen to take a reduction in wages to do this. I only want to know if taking advantage of my employers salary sacrifice would be beneficial.
Without knowing your income details it's impossible to say.0 -
I think I have just worked it out anyway after reading the exceptions over again.0
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