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Claiming CTC and SSS - what happens?
leftieM
Posts: 2,181 Forumite
My employer is about to introduce a salary sacrifice scheme (nursery tax scheme) for its workplace nursery. I was having a look at the tax credit calculator to see how this, and the fact that we are having another baby, would affect our CTC.
Currently we pay £119 a week in childcare. I earn £25k and the husband earns £22k. We receive about £600 a year.
Next year we will pay £277 a week in childcare (2 kids and employer is jacking up the nursery fees to pocket our tax benefit) but I will have the amount deducted from my salary before tax and NI so I will earn £11700 after this. With pension contributions (based on my gross salary) deducted this figure drops to about £5500 for the online calculator.
So...when I say that I earn £5500 and don't pay for childcare the figure we'll receive is £1700. When I put my salary as £19K (with pension ded.) and give childcare costs as £277 a week we seem to be entitled to £6000!
Obviously I want to receive as much state assistance as legally possible. But why are the figures so far apart??
Currently we pay £119 a week in childcare. I earn £25k and the husband earns £22k. We receive about £600 a year.
Next year we will pay £277 a week in childcare (2 kids and employer is jacking up the nursery fees to pocket our tax benefit) but I will have the amount deducted from my salary before tax and NI so I will earn £11700 after this. With pension contributions (based on my gross salary) deducted this figure drops to about £5500 for the online calculator.
So...when I say that I earn £5500 and don't pay for childcare the figure we'll receive is £1700. When I put my salary as £19K (with pension ded.) and give childcare costs as £277 a week we seem to be entitled to £6000!
Obviously I want to receive as much state assistance as legally possible. But why are the figures so far apart??
Stercus accidit
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