Childcare voucher question(5 Posts)
Hello well informed ladies of mumsnet,
Wonder if someone can confirm something? My friend (a company director, not a mum) said that her company was planning on stopping childcare vouchers at some point in the future because she said the
Govmt, not her company was stopping them.
Have I majorly missed something?
(Please note, not aiming to start mass panic, just hoping someone can confirm it's not the case).
Can't remember the time scale, but yes they are going to stop. There is a period where people who are already signed up can continue, but no one new can join. I'm sure some one who knows the exact dates will come along soon.
the stingy b*stards. I must have blanked it out then if it doesn't affect people already signed up.
I don't know where you're getting your information from but the vouchers are remaining for the forseeable future.
The change is that if you are a higher rate taxpayer then there is a cap on the vouchers from April 2011.
Of course long term who can say if the vouchers will stop but from what I've been told they're safe for at least another few years.
Okay, thanks for clearing that up.
I've just found this on moneysavingexpert....
n 2009 there was much to-ing and fro-ing over the future of childcare vouchers, with talk of abolishing them - yet that is NOT happening.
However the June 2010 emergency budget announced major changes in the amount of vouchers allowed for higher 40% and top rate 50% tax payers. Here's a rough synopsis...
Current situation (per parent):
Basic (20%) Taxpayer. Allowed £55/week vouchers, max. annual gain £890.
Higher (40%) Taxpayer. Allowed £55/week voucher, max annual gain £1,170.
Top (50%) Taxpayer. Allowed £55/week voucher, max annual gain £1,460.
New joiners after April 2011 (per parent):
Basic (20%) Taxpayer. Allowed £55/week vouchers, max. annual gain £920.
Higher (40%) Taxpayer. Allowed £28/week voucher, max annual gain £610.
Top (50%) Taxpayer. Allowed £22/week voucher, max annual gain £590.
Where previously the scheme benefitted higher earners disproportionately, these changes were meant to give roughly the same maximum tax gain for all taxpayers, yet when you factor in next year's changes to national insurance, basic rate taxpayers do much better.
Yet the most important point is...
If you are already in the scheme by April 2011, then you can continue to get the current amount of vouchers.
Therefore if you're planning to join, doing it prior to April 2011 is highly worthwhile for higher taxpayers. Remember, most vouchers have a long date on them (e.g. three years) so even if you don't quite need them yet, but definitely will, it's worth getting into the scheme before the allowances plummet.
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