Child care vouchers/ Company car/ Working Tax credit

[caugirl]

Hi All,

This is all so confusing for me. I'm a single parent that is lucky enough to have a company car but I'm also thinking about talking to my employer re:childcare vouchers. How do they work? Is it beneficial for me to get them? How does it affect working tax credit?

I appreciate any feedback. Thanking you in advance.

[KatyMac]

If you get childcare vouchers your childcare bill goes down (so current amount less voucher) so you can claim less TC towards childcare

I don't know anything about cars....sorry

[caugirl]

Thanks KatyMac for the speedy response. Hope I can return the favor!

[M1SSUNDERSTOOD]

Re company car you have an allowance for this offset against your tax I.e you can earn less before getting taxed as it counts as benefit. On TC form there space to notify them of any benefits etc and you should receive a PD11 form from your employer with this figure on it.

[M1SSUNDERSTOOD]

should have put this only applies if you earn above £8500 pa.

[lofty66]

Childcare Vouchers work as follows:
(1) usuallly your employer is attached to a scheme if not they can join one...many out there on the market.
(2) you are entitle to claim up to 243.00 tax free and this is deducted from your salary and depending on the voucher provider can be paid to your childcarer by various methods eg direct debit, paper voucher, your control when and how much paid via an online account.
(3) you basically 'sacrifice' your salary hence tax free but must sacrifice for at least a year

I think there are rules about claiming tax credit and childcare vouchers...not sure you would have to check and what best benefits your personal circumstance. A mind field!

Hope this helps

[FouxDuFaFa]

As I understand it, as a single parent you are generally better off claiming the tax credit rather than using a voucher scheme.

My voucher scheme had a calculator which told you how you were better off. When I became single, I chose to stop using childcare vouchers.

It might not be the same for everyone though, so check. Maybe someone in your HR department can help?

[ChasingSquirrels]

whether you are better off using vouchers or not has nothing to do with whether you are a single parent or not, and everything to do with how much you earn.
It has to be looked at and calculated in every situation which regard to all factors.