Help doing the maths for NHS salary sacrifice childcare Vs Tax-free childcare

FIREmenow

Hello Everyone,

I am currently trying to quantify the pros and cons of my husband salary sacrificing nursery fees compared to the tax-free childcare account.

There will be NI savings I believe?  Would the tax be the same as we are basic rate tax payers?  I want to model what the long term implications for his pension might be, but I'm not sure how to work this out if anyone can help please?  Or if there is some kind of breakeven point depending on how many days (and therefore how much salary is sacrificed) we decide upon.

He works 4 days a week, earns about £37k.  The childcare wont start until after April this year so his 1995 final salary portion and remedy period will not be affected, it will be 2015 pension contributions.

Many thanks

EDIT: I realise I have made a mistake above - he will not be paying into the 1995 scheme anymore, but of course it is still final salary.  He will be working long after our child is in school so I don't think he will still be salary sacrificing at that point so it should not effect the final salary amount.

sheramber

if by salary sacrifice you mean child care vouchers these are no longer available unless you are already enrolled in the system.

FIREmenow

Hi @sheramber, thanks for your reply. 

Because it is an NHS-linked nursery, he can pay the fees through salary sacrifice.  Child care vouchers aren't an option for us as we are new parents - thanks for the nudge to clarify!