Should I be getting Childcare vouchers?

rpc

lobbyludd wrote: »

there is a calculator somewhere that shows whether you are better off using child care vouchers or not - I can't currently find it, it may even be on this site. however from what I remember unless you are earning enough to be in the higher tax bracket, then it is not cost effective to claim the child care vouchers as you lose a greater amount in tax credits than you gain in not having the vouchers taxed - also you can't claim vouchers for the whole of your childcare - the amount is fixed - you'll need advice, or to work it out yourself, for your exact situation, not based on other people's yes or no on a forum - my employer will help people work out what is best for them, perhaps yours will too? ask HR?

It isn't that hard to work out.

Full calculator is at https://www.gov.uk/childcare-vouchers-better-off-calculator

Guidance that should be enough to decide (assuming you know which elements of tax credits you receive) : http://www.childcarevouchers.co.uk/parents/parents-how-it-works/parents-for-you/parents-salary-sacrifice/#.V7lZ3_krJaQ
http://www.moneysavingexpert.com/family/childcare-costs

• Salary sacrifice means you've a lower income. If you're giving up salary to get vouchers, then for benefit purposes you earn a lower amount, this will increase your eligibility for tax credits.
• If you're not eligible for childcare tax credits. In this case, there's no problem, so if you're a couple where one works under 16 hours a week, or a single parent who does, or your income is too high to qualify, then there's no impact. So go for the vouchers.
• If you've childcare costs above £175 a week for one child, £300 for two or more. You will always be better off using vouchers for any amount above that, and may be better off for amounts below (the higher your salary the more likely).