Childcare vouchers v Tax free childcare

stokegal

Hi all

Hoping someone could help ot at least point me in the direct of a calculator which will help me calculate whether I would be better off using childcare vouchers or tax free childcare.

I am currently in a childcare voucher scheme with DS1 which I stopped paying into last April becuase of COVID and then he’s now in high school.

I am also pregnant with baby 2 due in July 2021 - intending to return to work in January 2022.

Computershare (who DS1 childcare vouchers were through) have advised I can restart vouchers as I have had a voucher within the last 12 months (April 2020) OH can’t enroll to childcare vouchers as they did not accept new applicants after 2018 (he was not in this previously as DS1 is not his child) so I have requested to immediately restart paying in the minimum of £20 / month to remain in the scheme and those vouchers will be used next January.

The baby’s estimated childcare costs are going to be £480 a month.

My pay for 2019-2020 is approx £51k and OH pay for 2019-2020 is approx £30k

Pay for 2020-2021 for me is expected to be lower (possibly under 40% tax bracket) due to maternity and OH pay is expected to be higher (but under 40% tax bracket)

Childminder has confirmed that accepts childcare vouchers.
 

As I was a higher rate taxpayer last year I was told I could only save £124 vouchers a month. However this year I may be on less (dependant on maternity pay) meaning I might be able to save £243 a month

I am trying to calculate whether I would be better off with childcare vouchers or tax free childcare?

Would OH be able to claim tax free childcare as well as me claiming childcare vouchers? Or would we be better off not claiming tax free childcare?

Thank you in advance for any advice

sheramber

You cannot claim both vouchers and tax free childcare. It  is one or the other.
Childfree childcare is claimed as a couple.
You can check here https://www.money.co.uk/guides/tax-free-childcare-vs-childcare-vouchers-which-is-best.htm