childcare vouchers????? how do they work?

[nomorebooze]

Hi, Im looking at applying for a job, it says as one of the perks they give you childcare vouchers! i am totally clueless as to how these work, how much you get, whether my husband can use them from his employer and me from mine or not. any advice will be appriciated. Many thanks in advance for all replies. xx

Unless you have a workplace nursery both you and your husband can claim up to £243 a month.

Your employer will probably use an agency to administer the vouchers. You will have to nominate an ofsted registered nursery/childminder and the agency will pay the value of the voucher directly to them. If you don't have a nursery yet, you can build up a little pot of vouchers for when you do.

Opting for vouchers can effect benefits like pensions, smp and your child tax credits.

thanks Sherbetdibdab!! used to love them, lol. the only thing that concerns me is how it can effect pensions anyone any ideas? xx

When they say "claim" - what it means is that you, or your husband, or both, opt to have up to £243 of your salary paid as childcare vouchers.

The advantage of this is that the £243 comes out of your gross salary, so you effectively get that tax-free. As sherbert says, you need to be aware that because they come out of gross salary, that can mean that your salary is lower for the purpose of other assessments (if that makes sense)

There are much clearer explanations around, I am sure. For us, the benefit far outweighs any issues, and DH and I each get £243/month paid as childcare vouchers, which we use to pay DD's nursery bill and DS's holiday clubs (we could use it for after school care as well but there is none left, generally!)

try here - Care-4 are one of many agencies who do the vouchers, but their explanation is probably clearer than mine.

It could effect your pension if

• you're in a final salary scheme
• your employer pays a % of your gross salary into a pension scheme.

You need to ask your employer if it will affect your pension. Many employers base pension contributions and final salary calculations on a notional salary before deduction of childcare vouchers (and any other salary sacrifice benefits) so they are not affected.