childcare vouchers

ruthieo

My husband and I both get the full amount of childcare vouchers per month (£243), our son is starting school in September and we will be reducing them by around £170 per month. I earn more than my hubby, so who is the best one to reduce their vouchers to save the most on tax or doesn't it matter?! thanks for any advice

EScott

Apologies in advance for the length of this post....

My workplace currently operates a childcare vouchers scheme. Each employee has to sign a variation to their employee contract to ensure it is counted as a salary sacrifice. The variation has to be for a set period and the employee cannot vary the amounts OR opt out before this time except in the event of an 'unforeseen life changing' event such as death or divorce.

My question is, if I sign up to the scheme for the next 24 months, at the end of the 24 months will I have the option to sign up for a further period (assuming my employer continues to run the childcare voucher scheme)? Or will I be viewed as a new applicant at this stage and therefore be deemed ineligible and be forced to use the Tax Free childcare account?

Mupette

ruthieo wrote: »

My husband and I both get the full amount of childcare vouchers per month (£243), our son is starting school in September and we will be reducing them by around £170 per month. I earn more than my hubby, so who is the best one to reduce their vouchers to save the most on tax or doesn't it matter?! thanks for any advice

The one who earns more tax would benefit to take the max allowance.

Just bear in mind the new TFC coming in 2017.

Any parent wishing to cancel vouchers now are/should be advised to take just the minimum and store up vouchers, once you stop your order when the new gov vouchers come in you will not be allowed back

vouchers can be spent in nurseries, nannies, childminder's after school clubs and holiday clubs, as long as they are government registered and registered with a childcare voucher company

Mupette

EScott wrote: »

Apologies in advance for the length of this post....

My workplace currently operates a childcare vouchers scheme. Each employee has to sign a variation to their employee contract to ensure it is counted as a salary sacrifice. The variation has to be for a set period and the employee cannot vary the amounts OR opt out before this time except in the event of an 'unforeseen life changing' event such as death or divorce.

My question is, if I sign up to the scheme for the next 24 months, at the end of the 24 months will I have the option to sign up for a further period (assuming my employer continues to run the childcare voucher scheme)? Or will I be viewed as a new applicant at this stage and therefore be deemed ineligible and be forced to use the Tax Free childcare account?

each employer is different, and it's with your employer you need to ask these questions, they made these rules and told the childcare voucher company to set them as this.