New Childcare Scheme

Jordyal

Hello,


I'm seeking advice on the new childcare scheme in lieu of the existing childcare vouchers.
The new scheme will not be available if either parent earns more than £100,000.


I'm fortunate enough that I'm likely to exceed this.
However, if I were to take a company car & increase pension contributions thereby reducing my gross income on payslip to which tax deductions apply would this be deemed as being below the £100,000??


I'm unclear and cannot find if benefits count towards the figure.


Thanks
Jordyal (1st time Poster!)

stoozie1

Someone more knowledgeable will bealong shortly, but my understanding is that pension and gift aid contributions will lower your taxable income, thereby making you eligible.

I understood that acompany car and other benefits in kind would be taxable and therefore wouldnt help in bringing you below the threshold.

Darksparkle

A company car would increase your taxable income.

Jordyal

Yes, but by less than the Cash Allowance I'm sacrificing by 'opting in' to the company car scheme

pmlindyloo

It might be worth your reading this link and then following the links for further information:

https://www.moneysavingexpert.com/family/tax-free-childcare

Jordyal

Thanks, useful info but doesn't really answer the question.
I suppose ultimately what I'm asking is does the government consider paying more into a pension as a legitimate way to reduce gross income sub £100k to thereby qualify for the scheme?

pmlindyloo

You could contact these people and ask your question(s)

http://www.tax-free-childcare.info/contact-us/

nannytone_2

on such a decent income, it seems an awful lot of bother to save 20p in the pound of childcare costs.