A Working Mum
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Childcare Vouchers
One way that you can reduce your monthly outgoings on childcare is to use ChildcareVouchers if you're employer has a scheme available.
You can make significant tax and NI savings of up to £933 per year by using thevouchers, and double the saving if both working parents can use the scheme.
The allowance for the vouchers is £55 per week or £243 per month for 20% tax payers. If you are a higher rate tax payer then the amount that you are eligible for is £28 per week or £124 per month. If your earnings are above the additional rate threshold then your allowance is £22 per week or £97 per month.
Your employer will normally deducted the value of the vouchers from your gross salary before tax via salary sacrifice. However you can only use the vouchers to help withchildcare costs if your children are aged between 0 and 15 years or up to 16 years of age if your child is disabled
The vouchers can be used towards most registered childcare providers - childminders, nannies, day nursery, as well as for after school clubs, school holiday clubs and breakfast clubs.
To find out more information and to see if using childcare vouchers could affect your tax credits please use the online calculator.
