Would we be better to use childcare vouchers?

[sportinguista]

New on here, so not quite sure of myself please excuse any mistakes!

Did tax credits renewal recently and due to error apparently on my part we now owe about 1000, mainly because of not understanding how the estimated income worked and if I'd left the figure at 2009/10 levels we would have qualified for the disregard. We now won't receive anything for a couple of years to pay it back.

Talking about it to TC they also said we no longer receive anything as regards to childcare when the threshold came down. Now I'm wondering if we could use childcare vouchers? Both myself and DH have schemes at work and without applying I'm not sure how much we could get, but it would help I'm sure. I just wonder if it would interfere with paying the tax credits back? We only get basic CTC no WTC and never have. I have to decide soon as the date to apply for the vouchers comes up soon at work and DH will have to look into whether he can get them, I do know the nursery will take them.

Can anybody advise or has been in a similar position? Would be really grateful for any advice...

Short answer is yes, childcare vouchers will save you money.

If you both take the max (£243 per month) then you could save £1000 a year, each.

Daft not to

Using childcare vouchers will save you money whatever your situation regarding tax credits. The way it works is that the amount you decide (max £243 per month at the moment each) is deducted from your salary BEFORE tax, and then you pay your carer using paper vouchers, or via electronic vouchers over the internet. It saves you the tax on the amount up to £243 that you would have paid.

It will not affect your tax credits claim, if you have one. It is totally separate and anyone, regardless of income, can use the scheme.

you would be bonkers not to do it!!

Thank you so much for the advice, it has confirmed what I already suspected, I just wanted to be sure that it wouldn't cause more trouble. Going to make it my priority to sort on Monday at work. With the 15 hours coming in soon as well it will make things a whole lot easier. Just never thought of ourselves as higher earners before!

JUst want to say that mumsnet has always been the most useful place for advice since I've had DS. I can always find what I'm looking for!