Childcare Voucher surplus and tax credits

angelface329

Just wondered if anyone can offer some advice. i am about to go on maternity leave and during that time my employer will continue to pay for £243 of childcare vouchers - this does not show against my salary and is a goodwill gesture from them.
Whilst i'm off my eldest son will start school and i can also reduce his days at nursery as i will be at home to look after him (though for continuity and a break for me he will still go once a week). this means that when i return to work in December/January (I cant take full maternity leave as husband has just left and i am on my own so need to start earning again asap) I will have a surplus of vouchers in my account. I had planned make these last as long as possible by only using some of these each month to pay the nursery bill and then paying the balance myself. the outcome of this re tax credits over the year is the same in that the same amount of vouchers and the same amount of cash will be used but, would the tax credits people expect me to get through the vouchers first and then contact them? Hope this makes sense! I dont want to get in trouble with HMRC, just trying to spread my outgoings without having to make too many changes to my tax credit application.

shedboy94

How much are your total child care costs and how much do you declare your costs as to tax credits?

dundeediva

angelface329 wrote: »

Just wondered if anyone can offer some advice. i am about to go on maternity leave and during that time my employer will continue to pay for £243 of childcare vouchers - this does not show against my salary and is a goodwill gesture from them.
Whilst i'm off my eldest son will start school and i can also reduce his days at nursery as i will be at home to look after him (though for continuity and a break for me he will still go once a week). this means that when i return to work in December/January (I cant take full maternity leave as husband has just left and i am on my own so need to start earning again asap) I will have a surplus of vouchers in my account. I had planned make these last as long as possible by only using some of these each month to pay the nursery bill and then paying the balance myself. the outcome of this re tax credits over the year is the same in that the same amount of vouchers and the same amount of cash will be used but, would the tax credits people expect me to get through the vouchers first and then contact them? Hope this makes sense! I dont want to get in trouble with HMRC, just trying to spread my outgoings without having to make too many changes to my tax credit application.

To answer your question, No. Tax credits don't know when the vouchers have been given etc. You need to make sure however (as i'm sure you are aware) that you only declare the surplus amount you are paying in cash to childcare and NOT include the voucher amount.

angelface329

At the moment my child care is about £280 a month so I have the max of £243 vouchers and pay the rest in cash. I don't claim any tax credits at the moment. I will be on maternity leave from may and then my nursery bill will reduce to 150 a month, when I go back to work in jan they will go up to £300 a month so then I was hoping to use £200 of the accumulated vouchers and pay the £100 difference.