Childcare vouchers question, do you use them?

Hi ladies,

When I go back to work, James will be going to nursery 2 days a week. I am thinking about applying for the Childcare vouchers, I believe you can get ??55.02 a week. OH could do the same for the rest of the amount, which is going to be.??88.40 a week.

So this works on a salary sacrifice scheme, and you end up paying less tax and national insurance.

Just wondered if anyone who uses childcare vouchers could give me an insight into it a little more. Presumably those who use them would recommend them, as you have a little more money than you would have without them?

Thanks for any replies. xx

Posts

  • oh will be keeping an eye on this one - is salary sacrifice the only option for workers that dont qualify for child tax credit childcare??? confused.com!
  • Me and husband use them. We have 243 each taken from our wage but save ??75 each on tax. We then pay our childminder ??486 in vouchers each month. We manage them online so it's a few minute job once a month. We then pay the childminder the remaining amount. Once try are set up there's not much too it. Your company and childcare provider both need to register.
  • Thanks Betty. I work for the NHS so they are registered, the nursery also is. xx
  • Definitely use them it's a no brainer you definitely save money!

    AND they can't take them off your SMP on a second pregnancy (this is where I am now) so when my salary drops to JUST SMP all of my lo's childcare will be paid by the government image

    But yes definitely use them - they are there for a reason and let's hope the conservatives don't whip them from under our feet in the new budget!
  • H2B and I both use these. The max. is ??243 a month so we both do that amount. I'm afraid it still doesn't cover the nursery fees for 3 days a week though! I pay the remainder by direct debit. It saves us a bit of tax and NI and I think we save just short of ??2000 a year on the nursery fees themselves

    OHs work and mine use different voucher companies, so I have a standing order set up from OHs voucher company to the nursery, then with my own I go in every month when I get the email saying they have arrived, and transfer them over. Click of a button really!

    Summer, you can use these as long as your work is registered (or is happy to register for you) it saves them money too by the way, and the childcare provider is registered. CTC and WTC are not involved in it at all I believe

    Yes MaxiMum, I am keeping my fingers crossed the Tories don't change things. H2B and I are "middle-income" so I'm sure we will be affected by any changes

    xx
  • Hi mythical, ive used them and they are great. To give cash idea of the saving, my childminder charged ??54 for 2 days a week. My company took ??54 off my top line and paid it directly to the childminder every week. Then when i got paid i was only about ??36 less in my hand each week. It effectively gave me childcare at ??18 per day ish, and saved me ??10 per day.

    The good thing is that you and oh can claim up to the max which is great when you are looking at childcare costs. I used to haver my 2 kids in nursery 2 days so using the vouchers really helped

    Gemm x
  • Actually recalculating....Our cost would be ??70.20 a week. So only one of us would have to apply for the full amount, the other could do a partial amount?

    Or is it best to halve the fees, and both apply partially?

    Sorry if these are daft questions.... :lol:
  • I don't think it would make a difference mithical as your saving would always be the same. Probably easiest if one does full and other does partial then if fees change just change the partial one.

    How does that work with the smp maximum? Do you get your ??500ish smp plus ??243 vouchers?
  • Betty - Yep I will get my FULL SMP allowance still and the nursery will still get paid the vouchers without me paying ANYTHING image Also if you are preg it might be worth dropping your vouchers between weeks 15 and 25 (I THINK) as these are the weeks your maternity pay is worked out on and you will get less if the vouhcers come out.

    Hope that makes some sense?!
  • I take the ??243 as salary sacrifice but I am now pregnant with number two. As maximum says I have reduced my vouchers to just taking ??50 for the next two months as my maternity pay is based on my take home pay between weeks 17 and 25 (am a teacher) so once I hit 25 weeks I just ask to get the 243 as normal. This means my maternity pay will be better - that makes sense does it?

    xxx
  • MaxiMum I replied in preg about this and I looked it up with my employer, They ask for another form of pyment while someone is on mat leave for childcare vouchers therefore it isnt salary sacrifice.... Now Im confused,,,
  • Hi, I am just looking into this, we get a bsaic amount of child tax credit, pay child care 1 day a week do you think they would stop the child tax credit if we did vouchers?
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