Childcare vouchers

Chezzabelle2017

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

glentoran99

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

Chezzabelle2017

Thank you for that

Kynthia

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.