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Childcare
childcare vouchers for the self-employed
beckytuesday · 21/09/2007 21:49
I'm self employed and wonder if there's any way I can get childcare vouchers - you know, the ones that are exempt from tax. Has anyone looked into this? Or is it just one of those things like maternity pay, sick pay and pensions that I'm going to have to do without?! Thanks everyone xx
SlightlyMadSweden · 21/09/2007 21:54
They are usually a scheme which involves surrendering pay, and the emplyer has to be register. SO I don't think you can get them if you are SE.
TBH they are not as good as they used to be. ou only get about £52 per week tax free now and you can't claim tax credits on their value. So unless you earn enough to make hte tax credits non-claimable you are better off not having the couchers but claiming tax credits on hte value instead. Thats what I do as it is actually gives me a bigger saving than the vouchers IYSWIM.
jura · 22/09/2007 14:26
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Message withdrawn at poster's request.
SlightlyMadSweden · 22/09/2007 20:16
popsycal. I used the Tax credits calculator to compare the 2 scenarios and when I first went back after Mat leave I was significanlty better off going hte tax credits route. I think it is about even now for me.
Any monies you pay in vouchers can't be declared as childcare costs, yet you still declare the income that you use to buy them with. I think it is totally unfair but ho hum. The vouchers give you the equivalent of about 20% saving off teh top of my head (income tax; can't remember whether you save NI as well but it would still only be about 30ish%). Depending on your income you can get up to 80% of childcare back in tax credits.
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