We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Childcare Vouchers - Borderline tax threshold
ben9090
Posts: 88 Forumite
Earlier in the year we started getting childcare vouchers for my daughter.
Im full time, my wife is part time but we have other income (property rent & ebay income registered as a partnership
Im on the borderline between standard rate tax and higher rate (just in higher rate) so I only get a voucher for £124/month and the rest comes from my wife who only just sneaks into paying any tax at all. However after looking at my finances this year I might just fall below the Higher rates tax especially taking into account he childcare vouchers as salary sacrifice.
To cut a long story short if I claim the basic rate allowance but then just end up in the higher rate bracket by a few hundred pounds what will happen?
Thanks
Im full time, my wife is part time but we have other income (property rent & ebay income registered as a partnership
Im on the borderline between standard rate tax and higher rate (just in higher rate) so I only get a voucher for £124/month and the rest comes from my wife who only just sneaks into paying any tax at all. However after looking at my finances this year I might just fall below the Higher rates tax especially taking into account he childcare vouchers as salary sacrifice.
To cut a long story short if I claim the basic rate allowance but then just end up in the higher rate bracket by a few hundred pounds what will happen?
Thanks
0
Comments
-
How about you put a bit more into your pension?0
-
details of how the system works here
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/367098/employee-qa2.pdf
see page 7
Basic Earnings Assessment0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards