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Childcare vouchers & higher rate tax band - has something changed?

(9 Posts)
Bellebelle Wed 18-May-16 23:30:21

Hi,

DH and I have been buying the maximum amount (£243 each) of childcare vouchers through our employer (work for the same company) since 2008. We've been higher rate taxpayers for a few years but only this month have we seen our employer change the tax treatment of the vouchers so that we only get tax relief on the first £124 of vouchers each and the change has been backdated to the start of the current tax year.

As we've been buying the vouchers since well before 6th April 2011 and we've never taken a break, changed employer etc my understanding was that we continued to receive tax relief on the full amount and I can't find anything online to indicate otherwise. Does anyone know if a change has been made?

Twistedheartache Wed 18-May-16 23:38:24

www.computersharevoucherservices.com/parents/frequently-asked-questions/Pages/protected-rights.aspx

Just found this on Google. I think you qualify (as do I - thankfully)

reynoldsnumber Wed 18-May-16 23:40:40

It's because you are higher rate taxpayers. I think it did change a couple of years ago, from all of it being tax free to only £124 being tax free for HR tax payers. I've been paying my tax back through my tax code rather than deducted by my employers.

Stylingwax Wed 18-May-16 23:42:28

I'm a higher rate tax payer, started getting them in 2013 and have only ever got £124. So sounds like they might have caught up?

reynoldsnumber Wed 18-May-16 23:42:41

Twisted that rings a bell. I think I just missed out by a few months as only started claiming vouchers after April 2011.

Twistedheartache Thu 19-May-16 06:20:53

The first time ever having an accountant for a mother came in very handy - DD1 was born in the last 10 days of March 2011. I was barely functioning & yet I'd sent off my childcare vouchers to hr & checked they had processed them in time!

SpaghettiMeatballs Thu 19-May-16 06:38:06

DD was late 2011 and I seem to recall we just missed out and have only ever been able to claim £124 each.

Bellebelle Thu 19-May-16 08:18:11

Thanks Twisted, I saw that too and lots of other sites saying the same, if you were subscribed to childcare vouchers pre 6th April 2011 it doesn't matter what your tax status is, you still get the full amount. It's odd that this has only kicked in from the start of this tax year, I wondered if there's been a change announced in a budget somewhere which went under the radar.

I have queried it with my payroll team so I'll report back once they've replied.

Bellebelle Thu 26-May-16 22:22:09

Got confirmation today that it was a mistake, my employer applied the tax to everyone in error and have advised that I shouldn't have been taxed due to having been in the childcare voucher since before April 2011. Hoping that it will all be sorted next month.

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