childcare vouchers amount entitlement

lexia

Can I still get the £243 vouchers as a higher rate tax payer (or I will get the £124 ones)? Does the employer review this when they process the salary increase? Or perhaps the HMRC triggers this employer review when they send the new tax code?

Thank you.

Darksparkle

The tax free amount for HR is £124. If you continue to receive £243 you will need to pay tax on the difference.

Darksparkle

lexia wrote: »

Thanks, I don't want to pay tax afterwards, I prefer to take the lower value vouchers.

I don't think I will be entitled to the higher amount vouchers anyway, once the salary increase kicks in... this is all confusing for me.

Maybe it depends on your provider but with mine, those on higher rate can still get the £243 voucher but they then get a P11d each year with the difference so that tax will be deducted.

Personally I would just take the lower amount, that's what my OH plans on doing as he is HR too. A lot less hassle.