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Employed and self-employed - childcare vouchers

(3 Posts)
cairnterrier Sat 20-Aug-11 19:25:39

Hi Everyone

Bit of advice if possible. At the moment I'm self-employed so am not entitled to childcare vouchers. I'm starting a new employed post from October and the wage from this will mean that I'm a basic rate tax-payer. However I'm also still going to have some income from my self-employed job which might take me over the threshhold for becoming a higher rate tax payer.

How do I work out how much I can claim in childcare vouchers? As far as my employer is concerned I'll be a basic rate tax payer but will I be expected to pay the extra back at the end of the year by HMRC if my self-employed earnings take me over the tax threshhold if I claim the maximum amount in childcare vouchers from my employed job?

Thanks smile

mranchovy Sun 21-Aug-11 11:08:14

No you won't be expected to pay it back according to the current rules published by HMRC. Basically, your entitlement to childcare vouchers from an employer depends only on your earnings from that employer.

IMHO this has been one of the worst thought-out and badly implemented tax decisions, which will only be surpassed by the mess that is going to be made with child benefit sadangry

cairnterrier Mon 22-Aug-11 22:42:57

Thanks, that web link was fab! smile

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