Pregnancy & Birth Clubs <
09/04/2013 at 22:02
Were just looking into childcare vouchers ready for H to sign up at work, and just wanted to ask where the benefit comes into play in your salary.
If we took the full £243 a month, does this mean he would sacrifice 243 of his salary, but then pay less tax that month so that the net difference is only about £170 in his pay?
10/04/2013 at 07:48
Yes thats right Bailey. Me and H do it. The £243 is taken as 'salary sacrifice' so its deducted before tax and NI so you dont pay deductions on that bit of your pay. In a nutshell you save roughly a third on childcare fees
Just bear in mind though that because you are technically taking a lower salary this affects things like mortgage applications, any application for benefits etc.
10/04/2013 at 08:39
The other thing to consider is if he's a higher rate tax payer he can only claim about half of that tax free (if you join a scheme after April 2011)
10/04/2013 at 09:22
I am not certain but I think that you can both claim the Childcare vouchers too if that helps.
10/04/2013 at 09:33
Yes me and my husband both claim so we save about £1000 each in tax and NI which really helps
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