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  • "Vegemite" started this thread

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Sunday, January 13th 2008, 10:12am

childcare savings for working parents

hello here is a link to give you info on salary sacrifice schemes for childcare- it effectively means you buy the fees before you are taxed so you then pay less tax as your income is officialy "lower" for us- it means our 230 a month fees actually cost us about 170 pounds. not all workplaces offer it, but it is in their interest to do so as they then pay less national insurance for you so they save money.

http://www.moneysavingexpert.com/health/childcare-vouchers

Saz

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Sunday, January 13th 2008, 11:36am

Yep, I do this! I get £110 of vouchers and only lost £70 of my salary. DH does it too. It is extremely well worth looking into!

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Monday, January 14th 2008, 12:51pm

Deos anyone know if you are allowed to do this and claim tax credits because when I looked into it through work I was told it was one or the other?

Ethel

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Monday, January 14th 2008, 2:27pm

I was wondering that too

as i think i wld be better having working tax credits

Bells

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Ethel

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Monday, January 14th 2008, 2:35pm

god i am still confused - thanks for the link though

i have a good look later

  • "Vegemite" started this thread

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Monday, January 14th 2008, 8:56pm

no as far as i know tax cedits are based on income, wheras these are for anyone who works, obviously you have to use a registered childminder, but it works for all afterschoool, holiday club too i think. i can't say for certain, but it might be that if you were adopting a tiny one who you got childcare discount for through low income then you might be limited in buying the vouchers, but as far as i know as long as your workplace is registered, you should have the option. and the way it can be really good is go for the higher income earner. for example, if you are lucky enough to have the nigher income earner in the forty percent bracket, you would literally get forty percent off your childcare fees (plus national insurance) as all that would be calculated after the nursery vouchers were bought!

the couple of things to remember are:

a tax credits are worked out on your gross earnings (so your pre voucher buying/ national insurance/ tax salary)

b you can only "amend" the amount you buy annually or when you have a life changing experience (relationship break-up, death in the family or child starting school i think)

it is certainly worth looking at- say for you ethel you old bag even if you only spent 100 a month on them go for it out of dh's salary- and that is 1200 a year for childminders (registered) and holiday clubs! (i hear they are pretty expensive round the east end :snigger:)

dont panic, you have time to find out, but ask your workplace, it is up to them (and in their interest) to set it up. I took a bit of convincing but two months in it saves a bunch!- and as you are a hard working family, not claiming benefits and not getting any hand outs, you deserve it :happy:

Ethel

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Monday, January 14th 2008, 9:16pm

Ohh thanks for that hun

When i did the tax credits thing on the internet we wld not get loads but it was still a help. We are on quite a good wack between us but when i reduce my hours it will go down - cld not believe how much I wld lose if i go down 1 -2 days a week but will be worth it. I also estimated what i wld earn ie part time and DH's overall turnover so it was not an exact figure.

DH is self employed so he cant get it ie the vouchers but he is thinking of changing jobs whilst I am off work ie not been self employed - so we will have to reasess it then also can then decide what childcare we need and how many days i need to go back for.

I agree I am not gonna milik the state like some people but def gonna get what i can. Someone told DH is betting off staying self employed because tax credits better -ie they look at the turnover,We just have to see. Least he wld get hols paid for, sickness if working at a company and might even get child vouchers as well. :D but his job now is just so flexible can have a day off at a drop of a hat.

mrsjasper

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Tuesday, January 15th 2008, 10:09am

Ethel, you are lovely, Its not milking the state when you have paid tax and NI all those years. Anyway you could always do a few hours as a Lollipop lady when Johnny is at school!

Ethel

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Tuesday, January 15th 2008, 4:00pm

Ahh thanks hun

It does seem strange though ie getting tax credits. I had dole money once in my life for a week when i came back from travelling and was looking for a job - got one within about 3 days - it was only £50 I got

dwarf

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Friday, January 25th 2008, 9:50am

If you google busybees childcare vouchers you will get a link. Our nursery fees are £580 ish per month for 4 days a week. We salary sacrifice so get the maximum £243 each but only lose about £160/ month in salary. That means we are saving 150 a month.

Some new stuff from the health visitor yesterday though said 9/10 faimilies should be eligible for working tax credits so I'm off to investigate! Will let you know what I find.

Ethel

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Tuesday, January 29th 2008, 6:32pm

Ohh please do hun as I hope to be elligble for both

Torisen

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Monday, February 4th 2008, 10:00am

Where can I find the form for employers?
I have just worked out that we can give ourselves the vouchers...

With the tax credits if you are elegible for them this year, they can still claim back the money if you earn more next year...

Chilli

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Monday, February 4th 2008, 11:19am

If you click on the link Vege put up there's a list of companies that you can sign up with, call one of them and they can advise you further :smile:

Torisen

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Monday, February 4th 2008, 5:25pm

They called us back...
I still don't get it... so they are different companies and not government based?

Sorry for being stupid...

Chilli

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Monday, February 4th 2008, 5:35pm

I don't get it either! :snigger:

I don't actually do it as I am not working, maybe Vege can help?

Ethel

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Monday, February 4th 2008, 6:30pm

its all so confusing

I was looking at family tax credit thing the other day - one time i did it i was going to get a reasonable amount a month and the next time i did it i hardly had anything

Have to have a good look when i go back to work

JENSQUI

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Monday, February 4th 2008, 6:53pm

Torisen - have you tried looking on the inland revenue website for info?
http://www.hmrc.gov.uk/childcare/

Ethel

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Wednesday, February 13th 2008, 10:32am

My head hurts with all this

Apparently everyone can have child tax credit if you earn under 56K but cant get get family tax credit if you earn over £16K

I think you can use the work vouchers and the child tax credit at the same time

I have to really have a good sort of it when i am off

kski

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Wednesday, February 13th 2008, 1:53pm

Hi
the nursery vouchers work on salary sacrifice -
you can sacrifice up to £50 per week and they are tax efficient -

ie 22%, 40% SAVING as the are pre tax.

receiving child tax credit should not prevent you applying as your gross income is not increased or decreased - only your taxable income.
It is similar to a sharesave scheme in tax terms

for those under £16k and on 10% tax the gain would be mininal, and committing to such a scheme for a year may not be such a good idea.

hoope that helps

Ethel

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Wednesday, February 13th 2008, 2:17pm

Thanks K

We are on over 16k between us even if i go part time - its worth doing the vouchers then isn;t it do you think

Child tax credit and family are two different things plus then there is the vouchers

Eeyore

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Wednesday, February 13th 2008, 2:38pm


Ethel

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Wednesday, February 13th 2008, 3:17pm

I know but there are other options i can take at work as well ie the vouchers

Once I know what i am doing ie hours and money i can sort it out

Thanks xx

Ethel

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Thursday, February 14th 2008, 7:10pm

If anyone is really stuck with this - just give the people a call on the number on the website - so so helpful - help me loads

Them child vouchers are def worth doing if you are going to pay out a lot on childcare




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