Child Care Vouchers - 2 questions

lianne1978

Do the vouchers affect tax credits and if so by how much?

TheWaltons_3

Yes - if you are having money deducted and receiving childcare vouchers, you can't claim Tax credits as well.

You CAN claim Tax Credits but you would have to admit you get the vouchers so that you aren't being overpaid towards your childcare costs.

Woby_Tide

if you are getting help with childcare costs from WTC then it's unlikely you would get benefit from taking childcare vouchers is the normal rule, CTC doesn't provide any help with childcare so in that instance the vouchers are normally worth claiming as it doesn't affect your entitlement

jasper12

Basically you can't claim the same cc costs from both ctc and vouchers. If if you are say paying 100 a week cc and using vouchers for all of this you would have to tell ctc and remove that 100 from your claim.

Remember though, if you are claiming childcare vouchers (salary sacrifice) you can deduct the value of these from your declarable income for the year for tax credit purposes. e.g you get paid 20k but receive 100 a month in vouchers (1200 pa). You can then deduct that 1200 from your 20k salary before you tell the ctc people, leaving you with only 18800 income to declare.

tigtag02

CCV are a non-taxable earning

TC use your taxable gross income to work your entitlement and the figure of your childcare payments.

If you get the vouchers then your taxable gross will be lower and no childcare figure will be used.

I would imagine in the long term figures would be a case of swings & roundabouts!

Hope that makes sense