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    • MSE Archna
    • By MSE Archna 3rd Oct 06, 12:01 PM
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    MSE Archna
    Childcare Vouchers: cut childcare costs by 1,000/year Discussion Area
    • #1
    • 3rd Oct 06, 12:01 PM
    Childcare Vouchers: cut childcare costs by 1,000/year Discussion Area 3rd Oct 06 at 12:01 PM


    This thread is specifically to discuss the content of the

    Childcare Vouchers: cut childcare costs by 1,000/year Article

    To discuss or ask a question about the article: click reply

    For the old thread click here

    Report inappropriate posts: forumteam@moneysavingexpert.com




Page 33
    • andyp200
    • By andyp200 8th Aug 18, 9:03 AM
    • 1 Posts
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    andyp200
    Vouchers and tax credits
    Hello,

    I am soon to become a Dad and am already racking my brains about how best to tackle childcare costs. I understand that you cannot collect vouchers whilst also receiving the tax benefit scheme, but was wondering if it was possible/ advisable to start collecting the vouchers from birth and then use them when I send our child to nursery at about 9 months. If I were then to stop collecting via the scheme would I be able to move over to the tax credit 20% off whilst paying the remaining cost in part with the vouchers previously accrued.

    I.e is there any way to use vouchers previously earned whilst benefitting from the new scheme? If not, I think I would be marginally better off with the new scheme.

    Thanks for any help,
    Andy
    • sheramber
    • By sheramber 8th Aug 18, 1:43 PM
    • 5,581 Posts
    • 4,243 Thanks
    sheramber
    yes you use any vouchers you have before moving to tax free childcare scheme

    https://www.gov.uk/help-with-childcare-costs/childcare-vouchers
    • Ladyst
    • By Ladyst 9th Aug 18, 3:34 PM
    • 1 Posts
    • 0 Thanks
    Ladyst
    Just found out when I spoke to my employer's scheme that you can't transfer to a different scheme if you change employers and they use a different voucher provider; you'd still count as a 'new entrant' even if you've been getting vouchers before October 4th when the scheme closes. This means I can't move job for FIFTEEN YEARS if I want to keep getting vouchers! Seems totally unfair.
    • sheramber
    • By sheramber 9th Aug 18, 6:59 PM
    • 5,581 Posts
    • 4,243 Thanks
    sheramber
    It tells you that on the government website.

    Similarly, you may move to an employer who does not run a child care voucher scheme. Not all employers do. It is voluntary.

    So you choice of new employer was limited anyway
    • Sarah_Connolly
    • By Sarah_Connolly 10th Aug 18, 9:58 AM
    • 1 Posts
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    Sarah_Connolly
    Having done the comparison for the coming year we would save 500 switching from vouchers to the new tax free scheme. However as my youngest would be eligible for 30 hours free childcare from 3 (he starts nursery shortly at age 1) is there a way of comparing long term savings?
    My eldest is also in childcare before/after school and to note we have no local family so will be relying on childcare for school holidays.
    • anita116
    • By anita116 23rd Aug 18, 2:22 PM
    • 37 Posts
    • 33 Thanks
    anita116
    Childcare vouchers v tax credits - any advice please?
    Both my daughter and son-in-law work. There little on is 10.5 months old. My daughter is claiming childcare vouchers but my son-in-law's employer does not offer them. We cannot work out whether it is better to switch or not. Any advice would be greatly appreciated please. Thanks.
    • Hairymonster
    • By Hairymonster 29th Aug 18, 11:48 AM
    • 89 Posts
    • 14 Thanks
    Hairymonster
    figuring out my best scheme
    Finding working out things really complex- especially with pending changes in childcare so wondering if people can help?


    I am self employed (salary + dividend) and wife is employed. Wifes employer signed up to edenred childcare vouchers which she pays each month salary sacrifice. My business doesn't have childcare vouchers as benefit would be minimal.

    we have one child so right now vouchers is suitable for the salary sacrifice saving.

    Childcare costs at the moment at 365.50 per month (243 vouchers + 122.50 cash)

    Baby No 2 arrives November- starting Nursery Oct 2019.

    From Dec 2018-Oct our costs will go down to 187.50 per month so will accrue an additional 55.50 of vouchers which we can use later but once these run out I am assuming we will be cheaper moving from childcare vouchers scheme to tax free scheme?

    We both earn under 100k per annum.

    When both babies are at nursery (2 x full days) our monthly cost will be 700 per month so under new government scheme assuming this will mean government will pay 140 per month x 12 = 1680 compares to the 933 saving for vouchers?

    Also is it possible to resign from the childcare vouchers scheme and sign up to the new scheme when it becomes more beneficial? What is the process?
    • sheramber
    • By sheramber 29th Aug 18, 6:08 PM
    • 5,581 Posts
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    sheramber
    https://www.gov.uk/help-with-childcare-costs/tax-free-childcare
    • Roxit
    • By Roxit 5th Sep 18, 3:55 PM
    • 1 Posts
    • 0 Thanks
    Roxit
    tax free child care vs vouchers addition-to-salary
    Hello

    Wondering if anyone can help, I seem to have got myself very confused about all this, and not sure what would be best for us!

    Our situation is currently as follows:

    My husband and i have a business which is a Partnership, so he is self employed while I am employed by said business.

    I currently get child care vouchers but rather than via salary sacrifice, the business effectively pays for it as an Addition-to-salary.

    When I joined the scheme we only had one child and this pretty much covered his childcare costs at 2 days p/w.

    We now have 2 children going to a childminder 3 days p/w, plus my eldest also goes to Nursery 1 day p/w, so child care costs have gone up significantly!

    My eldest should get 30 free hours as of next month when he turns 3, but there will still be a big bill each month for him!

    Does anyone know if we could pay into the tax free childcare scheme via our business, like we currently do with the vouchers? If this isnt possible,, can I be in the childcare voucher scheme and my husband join the new tax free childcare scheme, as this scheme is open to self employed people too? or do we both have to be in the same scheme?

    Just trying to figure out the best and most cost effect way to go about it, but it is so confusing as our situation is slightly complicated!! Any help or suggestions would be greatly received!
    • sheramber
    • By sheramber 5th Sep 18, 7:26 PM
    • 5,581 Posts
    • 4,243 Thanks
    sheramber
    You cannot use both vouchers and tax free scheme.

    The tax free scheme is not paid through the employer . It is an account where money is paid in by you, your husband or anybody else who wishes to contribute to the childcare costs.

    https://www.gov.uk/childcare-calculator
    • doppers
    • By doppers 26th Oct 18, 4:07 PM
    • 10 Posts
    • 0 Thanks
    doppers
    Partner not allowed to join Tax free scheme if i receive vouchers?
    My partner has recently started a new job and they do not offer the childcare voucher scheme. I am already on the voucher scheme, but when she tried to sign up for the tax free option it said that she couldn't use that scheme unless i stopped using the vouchers? I just wanted to confirm if that was correct and if it would be better if i did come off the scheme as the voucher option best suited our needs only having one child and low childcare costs?

    Thanks
    • sheramber
    • By sheramber 26th Oct 18, 7:38 PM
    • 5,581 Posts
    • 4,243 Thanks
    sheramber
    Yes, you cannot use both systems. Either you have the vouchers or you both join the tax free system.
    • tygalily88
    • By tygalily88 25th Nov 18, 1:35 PM
    • 1 Posts
    • 0 Thanks
    tygalily88
    Hi,
    My husband currently uses the salary sacrifice childcare vouchers for our son. Our son has now turned 3 and started pre-school, we have just tried to apply for the 15 hours free childcare but it says that we need to cancel our voucher scheme in order to do this, unless we qualify for the 30 hours free. We don't qualify for 30 hours and this seems quite unfair that some people get 30 hours and can pay for extra hours with vouchers but we get 15 hours and then need to use cash for any extra hours. I'm currently pregnant and we won't qualify for the tax-free childcare either so I think we will lose out massively leaving the voucher scheme, any help?
    • onlyroz
    • By onlyroz 25th Nov 18, 1:46 PM
    • 14,878 Posts
    • 28,144 Thanks
    onlyroz
    Hi,
    My husband currently uses the salary sacrifice childcare vouchers for our son. Our son has now turned 3 and started pre-school, we have just tried to apply for the 15 hours free childcare but it says that we need to cancel our voucher scheme in order to do this, unless we qualify for the 30 hours free. We don't qualify for 30 hours and this seems quite unfair that some people get 30 hours and can pay for extra hours with vouchers but we get 15 hours and then need to use cash for any extra hours. I'm currently pregnant and we won't qualify for the tax-free childcare either so I think we will lose out massively leaving the voucher scheme, any help?
    Originally posted by tygalily88
    Sounds like nonsense to me. I was able to claim the 15 free hours while still using childcare vouchers.
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