Tax-Free Childcare vs Vouchers
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sausage555
Posts: 5 Forumite
Hi
Getting confused with Childcare vouchers vs Tax-Free Childcare scheme.
Parent 1 salary - £85K + bonus (total likely to be under £100K) - just moved jobs and can't claim vouchers now.
Parent 2 salary - £92K + bonus (total likely to be over £100K) - already getting childcare vouchers. On Mat leave this fin year, so well under the 100K.
Our childcare costs will be £22K per year from April.
Am I right in thinking bonus is calculated as part of income?. So likely to take one of us over the 100K threshold for the Tax-Free Childcare scheme. If we went to Tax-Free Childcare scheme and went over the 100K, I'm assuming they would want the 20% back?
Secondly, if the scenario is likely above, then we are better off sticking to 1 parent with vouchers right? As once moved, we can't go back? We're likely to be using childcare for years.
1 parent can't get vouchers and the other Tax-Free Childcare scheme?
Getting confused with Childcare vouchers vs Tax-Free Childcare scheme.
Parent 1 salary - £85K + bonus (total likely to be under £100K) - just moved jobs and can't claim vouchers now.
Parent 2 salary - £92K + bonus (total likely to be over £100K) - already getting childcare vouchers. On Mat leave this fin year, so well under the 100K.
Our childcare costs will be £22K per year from April.
Am I right in thinking bonus is calculated as part of income?. So likely to take one of us over the 100K threshold for the Tax-Free Childcare scheme. If we went to Tax-Free Childcare scheme and went over the 100K, I'm assuming they would want the 20% back?
Secondly, if the scenario is likely above, then we are better off sticking to 1 parent with vouchers right? As once moved, we can't go back? We're likely to be using childcare for years.
1 parent can't get vouchers and the other Tax-Free Childcare scheme?
0
Comments
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Bonuses are taxable the same as your salary so would be included in your taxable income. Could you pay into your pension to remain below £100k.
Id have thought tax free childcare would have been a much better saving then childcare vouchers which would only about £625 per year.
You are right that you cannot use both schemes.0 -
ah pension! That would easily take her under the £100K
Many thanks!0
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