Am I a high rate taxpayer?

taxthrestold

Hello,

I don't thing the question is as simple as it might first look. My gross salary is just above the 40% tax level, but I make additional voluntary pension contributions into my employer's pension scheme, direct from my salary, after which I'm below the 40% threshold.

My employer has just started a childcare voucher scheme which I want to use to purchase the maximum amount of vouchers possible. Without my additional pension contributions and after the high rate tax limit of childcare vouchers (£124 per month) I'm above the high rate threshold. Without additional pension contributions, but after the basic rate limit for childcare vouchers (£243 per month) I'm below the high rate tax threshold. Obviously, with additional pension and either childcare limit I'm below the high rate threshold.

So my question is, for the childcare voucher scheme do I have to complete it as high rate or can I correctly put in low rate and therefore put more money into the vouchers? I have asked the voucher provider and they don't know. If it's relevant, I do a self assessment tax return.

Many thanks

Nicola_Ed

Hi - your employer has to decide the maximum childcare vouchers you can have not you.


The link to the HMRC guidance is below


https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/367098/employee-qa2.pdf


Start from half way down page 7. Once your income has been estimated the figure will not change even if the estimate is wrong.

taxthrestold

I had been searching the web but didn't find this information. Many thanks for the helpful reply.
:T