| Some Childcare Vouchers Questions... [message #382799] |
Mi, 19 April 2006 21:36 |
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Hello denizens of u.f, not posted in here for a while....
Couple of qs that are probably straightforward for anyone else who's been
here:
My partner is due to give birth in 3 months, and is currently in receipt of
the (old) maximum of her pay as childcare vouchers. I'm not clear why she
should consider stopping the childcare vouchers - the income is stil
taxable, she expects to return to work in 6 months...what am I missing?
Second, but related: I have just changed jobs to one which offers Childcare
vouchers too. If I signed up for the maximum, this would exceed our
monthly cost of eligible childcare - but it wouldn't exceed our *annual*
cost for this tax year, since our nursery bills will likely go up bigtime
next Jan. Is the assessment annual or monthly?
Thanks... :-)
--
F
Sprint RS "Big Yellow"
COO#1
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| Re: Some Childcare Vouchers Questions... [message #382802 ] |
Mi, 19 April 2006 22:40 |
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Ferger wrote:
> Hello denizens of u.f, not posted in here for a while....
>
> Couple of qs that are probably straightforward for anyone else who's been
> here:
>
> My partner is due to give birth in 3 months, and is currently in receipt of
> the (old) maximum of her pay as childcare vouchers. I'm not clear why she
> should consider stopping the childcare vouchers - the income is stil
> taxable, she expects to return to work in 6 months...what am I missing?
>
> Second, but related: I have just changed jobs to one which offers Childcare
> vouchers too. If I signed up for the maximum, this would exceed our
> monthly cost of eligible childcare - but it wouldn't exceed our *annual*
> cost for this tax year, since our nursery bills will likely go up bigtime
> next Jan. Is the assessment annual or monthly?
>
> Thanks... :-)
>
the income sacrificed for the vouchers is still taxed, but not subject
to NI, giving further savings to the employer too. In some cases, the
employer gives part of this saving back.
The 2nd Q... it depends on the voucher scheme used. In my case, it is
with Accor, where I can store the vouchers up over time (there is no
max) and spend them when I need to. In my case from Sept this year, my
daughter will go to school, and I will pay for after school club with
approx 75% of my vouchers. the remaining 25% will accumulate and pay for
the more expensive holiday clubs, so over the year, it will balance out.
It really comes down to how the scheme is run...
HTH,
Ian
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| Re: Some Childcare Vouchers Questions... [message #382883 ] |
Do, 20 April 2006 21:35 |
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Ian Cornish secured a place in history by writing:
> the income sacrificed for the vouchers is still taxed, but not subject
> to NI, giving further savings to the employer too. In some cases, the
> employer gives part of this saving back.
Not in hers though. Others have alluded to the fact that her maternity pay
will be based on the reduced gross, but surely her employer can't take the
money twice, as this implies?
> The 2nd Q... it depends on the voucher scheme used. In my case, it is
> with Accor, where I can store the vouchers up over time (there is no
> max) and spend them when I need to. In my case from Sept this year, my
> daughter will go to school, and I will pay for after school club with
> approx 75% of my vouchers. the remaining 25% will accumulate and pay for
> the more expensive holiday clubs, so over the year, it will balance out.
>
> It really comes down to how the scheme is run...
Indeed - her scheme operates like this, although it appears mine doesn't -
so I will just hold a voucher or two of hers back until they're needed.
--
F
Sprint RS "Big Yellow"
COO#1
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