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Childcare vouchers or tax credits

(4 Posts)
Mytimewillcome Mon 19-Nov-12 12:16:25

Which should we have? At the moment we can't claim tax credits because we have childcare vouchers but our second child is starting nursery soon and I am wondering which would give us the maximum benefit?


MaryMcGinty Mon 19-Nov-12 14:03:29

Hi mytimewillcome smile

It depends on how much you earn and some other factors. The advice offered by Childcare Voucher Solutions is sensible:

If you are earning below the tax bands or primary NI thresholds, and paying no tax or NICs, you would not benefit. If you receive more than the basic family element of child tax credit and claim childcare through the Working Tax credit, you should contact HMRC to see if signing up to your employers childcare voucher scheme would affect your tax credits.

My best advice would be to check here HM Revenue & Customs Childcare Vouchers Calculator. I think that would help.

Mytimewillcome Mon 19-Nov-12 16:18:55

Absolutely brilliant. Thanks MaryMcGinty. Who would have thought that they would have such a thing?!

MrAnchovy Mon 19-Nov-12 22:12:25

AFAIK there is nothing to stop you claiming tax credits (including the childcare element) and receiving vouchers, you just can't count the cost of the childcare which is paid for with vouchers as childcare costs for the tax credit calculation.

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