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Childcare costs

Discussion in 'Parenting' started by EcoLady, Feb 10, 2011.

  1. EcoLady

    EcoLady New commenter

    Childcare vouchers work as salary sacrifice. Your employer takes the money from your salary before they calculate your Tax and NI. Your get a paper or electronic voucher for that value, which you spend with your childcare provider.
    The maximum you can claim is £243 per earning person per month, so your husband will be able to claim too once he's earning. You save the tax and NI that you would otherwise have had to pay on that 243. It's well worth doing!
    Have a look at some of the voucher schemes to see how they explain it. http://www.busybeesbenefits.com/ are one of the biggest.
    Also official advice here... where you'll also find guidance & a calculator on whether you might qualify for the childcare element of Tax Credit. http://www.hmrc.gov.uk/childcare/interaction-tc-cv.htm
     
  2. If you do the salary sacrifice, you can both do this, you save about £60 in tax and NI. This is also a good website to find out what you are entitled to as well. http://www.turn2us.org.uk/benefits_search.aspx
     
  3. I get £243 childcare vouchers and save £71 a month in tax and NI. Even better if you ask me is that fact that the money comes out before I've even seen it so doesn't feel like I'm paying the childminder, if that makes sense!!
     
  4. My husband claims the salary sacrifice scheme - £243 a month. It does not cover all of the child care, but most of it. It saves about £1100 a year in tax. Both parents can claim, the £243 is for a higher rate tax payer, it is slightly less for a standard rate. We use a company called Computershare, it used to be called Busy Bees. Really easy to set up, and we electronocally pay our childminder. It is not means tested, but be quick!! The government is stopping new claims at the higher rate of tax at Easter, so get in quick!!!!
     
  5. madenglishgirl

    madenglishgirl New commenter

    I use the childcare vouchers as well and luckily, as a single parent, I get 80% of my childcare paid for by CT.C
     

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