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    Childcare Tax Free vouchers does anyone use them??

    I found this on the net and i was wondering does anyone claim them and if they do what sort of expericance do they have with them ?? Do useem to save is it worth doing

    moneysavingexpert.com/hea…ers

    4 Comments

    I joined a scheme via my employer in September, I have been having £100 deducted from my wages each month. I then log into a website run by a seperate company called kidsunlimited to manage my vouchers. e.g the vouchers are in the form of a balance in an online account. When the nursery gives me a bill each month, i log onto kidsunlimited and click on a tab which lets me pay the nursery.
    It's been working fine and was easy to set up, i got a form from Hr at work, kidsunlimited then contacted me by email to confirm the set up. I seem to remember them stressing the point saying the contract would have to be minimum 12 months unless there was a drastic change in my lifestyle.
    with regards to the 'savings to be made', i dont know/have not worked it out, just taking their word for it that i am not paying tax on this money.

    I used to have the full entitlement of £256 per month when my son was in full time Pre-school care. This saved me around £45 in tax each month as it's deducted from Pre-tax wages. Still have them for after school care but only £50 per month.

    If you have high childcare cost both parents can have upto £256 each month, you could also get grandparents to get them on your behalf if they work.


    link to site [url]www.busybees.com[/url] for more info.

    you should defo do it if your company does a scheme, I do £240 a month & my GF does £80 a month - that covers all of our childcare each month saving us something like 20-25% of what we should be paying!

    don't get me wrong these vouchers are good and do save money via the tax system. However, if you are on a low income and get a fair amount in tax credits beware because tax credits will take this into account. Now I'm going off my memory of having training on this some years ago, but if I remember rightly the rule of thumb is, if you get only the very minimum amount of tax credits (around the £500 per year mark - which is the equivalent of the old tax allowance for having children that tax credits replaced) then you are definitely better off getting these vouchers. But if you get a lot more tax credits, you may not be better off getting these vouchers and my advice would be to go to the Citizens Advice Bureau or some other free advice service (perhaps a benefits calculation website) and get a benefits/better off calculation done before applying.
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