Childcare Vouchers

Is anyone please able to explain to me how these work? I cant work it out from the HMRC info!

It talks about £243 per month, but I assume this isnt cash in my wages!!  I cant work out in real terms how this will help me!

I need it in simple terms lol

Posts

  • You can have up to £243 taken from your gross salary and put into a childcare voucher scheme, which can then be used to pay your nursery/childminder.

    This money is then not liable to tax or NI since it's taken before those are calculated, so you can save up to about £900 in a year if you take the full amount.

    Hope that makes a bit more sense?

  • I see, so you get taxed on a lower amount, so possibly about £75 a month better off.  Thanks!

  • That's right Smile  If you claim any tax credits I think it can reduce them though.

  • Yep £75 ish a month better off here, each.

  • Yep they come off your salary before tax and go into an online account for you to pay for childcare. You can store them up in advance, for example I've started getting them this year so I have enough stored up to pay for p to start pre school next year when I'm on mat leave just getting smp. Also, as I only get smp my employer have to continue paying them for me when I'm off so I'll get 9months of them with paying for them which is nice.
  • Everyone's explained it quite well I think! DD is right though, it can affect any tax credits you get

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