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childcare vouchers if you only earn a bit over £10k gross a year?

(8 Posts)
stuckindamiddle Thu 06-Mar-14 22:33:30

Starting a new job soon and due to being part time I'll earn just over £10k (def less than £11k) gross. Won't be paying much tax as a result due to recent increase in personal allowance. Is it worth me getting childcare vouchers for my youngest who's in nursery 2 days a week? Thanks!

Splatt34 Fri 07-Mar-14 07:18:53

Surely it will simply mean you won't pay any tax, which must be a good thing

LadyKooKoo Fri 07-Mar-14 08:55:19

Yes! It's a tax free benefit so it will bring you below the threshold (they deduct them from your gross salary and then charge the tax on your wages) so you will end up not paying PAYE.

stuckindamiddle Fri 07-Mar-14 15:56:00

Oh that makes sense. I'll get ordering them. Thanks!

chocgalore Fri 07-Mar-14 16:43:03

Do you qualify for tax credits? If your household income is on the lower side, you are probably better of claiming tax credits to help with childcare. I used vouchers until i found out that I was £130/months worse off by using the vouchers instead of claimng TC.

stuckindamiddle Fri 07-Mar-14 20:15:55

Good point choc. No tax credits as DP's income too high.

BingoWingsBeGone Fri 07-Mar-14 20:18:16

Can your dp not get vouchers? Would make much more sense.

stuckindamiddle Fri 07-Mar-14 20:22:54

bingo - yes and he gets them, though annoyingly we didn't think about them while I wasn't working and no-one told us DP could have had them and banked them since our child was born!

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