Childcare Vouchers Help

Davehawk

Hi All

I'm very confused with the childcare voucher system. I have never used them before but im currently looking to take on a new job and the employer offers the scheme and so does my wifes employers. I will be on £17,800 per annual and my wife is on £32,000 a year can we still get these vouchers ? would it be best just for me to apply for the vouchers or my wife only or both of us. will it effect our pensions ? sorry so many questions just need to find the best way to use this scheme. our childcare monthly bill will be aprox £700-£800 a month

Any help will be great

thank you in advance

Paully232000

Hi,

The childcare bill you have per month is about the same as ours, and we both claim the maximum amount from our employers schemes, and then top the rest up as a direct debit to the provider of childcare. I think (although i should know for certain) it is £243/month you can both get, and we both take this amount.

It is taken from your salary before tax and NI is deducted and paid directly to the childcare provider, saving you money that you would have paid in tax and NI over the year on £243/month each. So if you both claim you will save more by not paying the tax and NI on both deductions from salary rather than paying the nursery fees, or part of after you have paid tax and NI on your wages.

Not sure about pensions and someone will come along soon to answer that part I am sure.

http://www.moneysavingexpert.com/family/childcare-vouchers
have look there.

Davehawk

Hi Paully

Thanks for your reply