Childcare vouchers or Tax free childcare

l3mon87

Hi all,

Not sure if I am posting this in the right place or if there is a thread on this already but here it goes.

I have been looking at both options but I’m still unclear which will be the better option for me and my partners situation.

We are looking to place our child into childcare for two days a week so looking at approximate costs of between £400 and £500 a month.

I am currently a higher rate tax payer (40%) and my partner will be going back to a part time job which will keep her under the personal allowance.

My employers offer the edenred childcare vouchers but looking for guidance on which the best option is for us.

Any help greatly received

archduke

As far as I can remember it depends on:

- how close you are (or are likely to be in the near future) £100k salary
- whether your partner can claim childcare vouchers too
- how many children you have (are likely to have)

Reason for this is you may be better off sticking with childcare vouchers if only one child and both can claim, especially if one of you will earn £100k plus as then no longer eligible for tax free childcare (and can't go back to childcare vouchers).