Reduce your FunTech fees by using Child Care Vouchers
This is NOT a tax credit or a scheme for families with low incomes
Childcare Vouchers are only available to working parent, who pay TAX and NI. Each working parent can benefit from significant tax and NI savings of up to £1,195 a year using Childcare Vouchers, and up to double the amount if both parents are working.
|Basic rate (contracted out) 20% tax 10.4% NI||£2,916||£886|
|Basic rate (contracted in) 20% tax 12% NI||£2,916||£933|
|Higher rate in the scheme prior to 6/04/11 40% tax 2% NI||£2,916||£1,225|
|Additional rate in the scheme prior to 6/04/11 50% tax 2% NI||£2,916||£1,516|
|Higher rate category 40% tax 2% NI||£1,484||£623|
|Additional rate category 50% tax 2% NI||£1,166||£606|
As a guide if you earn above £45,391, you are likely to fall into the higher rate category. If you earn above £151,484, you are likely to fall into the additional rate category.
Employers must offer childcare vouchers to all employees and both male and female employees should be able to participate in the scheme.
To be exempt from tax and NI for childcare vouchers:
Please note: although childcare vouchers are beneficial to the majority, they aren't always a financially sensible option and tax credits can be affected.