childcarwe voucher scheme

[ethanryan]

i was just reading spanners post and they spoke about childcare voucher scheme. what is this and how is it different from claiming childcare fom tax credits. who can apply?
thanks

[McNoodle]

I work for the NHS and we have a voucher scheme wherby you can have up to �50 a week of your wage in vouchers which you don't get taxed on. Considering our childcare costs are�150 a week and you're only saving the tax on �50 - not getting �50, it hardly seems worth it. Alternatively if you get working tax/family tax credits there is a childcare element. When I enquired, and due to being in the joint earning bracket of 14 - 50k, we were offered �7 a week (!) Your circumstances may be different, so contact them and see what they say. Anyone is entitled to apply as I understand it.

[ayla99]

Childcare element of tax credits can give you up to 80% of your childcare costs as a payment direct to your bank, for you to use towards your childcare bills.

If you don't qualify for that you can look into employer-based childcare vouchers. Both parents can apply for the vouchers - basically you sacrifice part of your salary and receive that amount in vouchers to pay your childcare provider(s). Each parent can claim up to �243 per month (I think) and you don't pay tax or national insurance on that part of your income.

Paper vouchers aren't used much now - usually its all done over the internet - the employer pays into the parent's voucher account ... the parent authorises the payment to the childcarer... who receives the payment direct to their bank.

Some parents have declined to use the voucher scheme because of the possible impact on future entitlement to maternity benefits and pensions. You need advice on this before claiming.

For more information ask your employer/personnel/human resources dept for an info pack.

HTH