Childcare vouchers

I have been researching childcare vouchers but no matter how much I read I am still confused, I know they take the money before tax but how does that help me save money? Someone told me they put in £64 out of their wages and get that money plus extra back in vouchers or are they telling a porky pie

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  • glentoran99
    glentoran99 Posts: 5,821
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    they take the money out before tax so you don't pay tax on it,




    e.g you get £100 in vouchers but your take home pay will only be £80 less so it will seem you are paying £80 out of your wages for £100 vouchers
  • Thank you for that :)
  • Kynthia
    Kynthia Posts: 5,659
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    They are also taken out of your salary before national insurance is deducted. So £100 of childcare vouchers only costs a basic rate taxpayer £68 of their take-home pay.
    Don't listen to me, I'm no expert!
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