CTC and childcare vouchers!!!

caleo

I have been offered these vouchers by my employer, and so has my husband. the nursery we have registered our children with have advised us to apply for them as well.

I have been trying to work out whether i will be better or worse off by using them, but it is a bit of a grey area.

I have just found a calculator, and worked it out, and my husbans and I would be £570 per year WORSE off by using vouchers!!!!!:eek:

http://www.hmrc.gov.uk/calcs/ccin.htm

I really think that people need to be a bit more informed about these schemes before taking them up. I really thought that they would benefit me, because we keep getting told you will save £1000 each annually!

I also found this quote on the HMRC website, which is what made me investigate further:

Will I be better off accepting childcare vouchers in return for a salary sacrifice or by claiming tax credits help towards my childcare costs?
This will depend upon your individual circumstances. Generally speaking, your family will be better off accepting childcare vouchers in return for a salary sacrifice if you can answer “yes” to one of the following:

• Your eligible childcare costs are more than £175 per week if you have one child or £300 per week if you have two or more children. In this case you will always be better off accepting childcare vouchers to cover your childcare costs above these limits.
• You are receiving tax credits at the family element (£545 per year, or £1090 per year if you have a baby aged under one) or less and you are claiming for your childcare costs.

Your family will generally be worse off or, at best, no better off accepting childcare vouchers in return for a salary sacrifice if you can answer “yes” to both of the following:

• You are receiving tax credits of more than £545 per year (or £1090 per year if you have a baby aged under one) and you are claiming for your childcare costs.
• Your eligible childcare costs are no more than £175 per week if you have one child or £300 per week if you have two or more children

I hope that this will help others to decide whether they are better or worse off with the voucher scheme as so much seems to be focussed on how much you can save!


Caleo

sharonr

Thanks, that's been really useful. I'm totally confused by the whole Tax Credit/Childcare voucher thing!