Hi, does anyone know if my Childcare vouchers amount will get affected by a possible pay rise once I am on maternity leave?
I am currently in the basic rate tax band but close to the higher rate threshold. My situation is that I joined the childcare scheme in August 2012 salary sacrificing the full £243 per month. My employer has confirmed that when my pay drops down to the SMP/nothing part for the last 6 months of maternity I will still receive these vouchers (I will get full pay for 1st 6 months of maternity)
However, I start maternity leave in April and pay rise time is at the end of June, my worry is that if my salary goes over the higher rate tax threshold at that time, then that will mean that my employer will only be obliged to give me £124 per month in vouchers for the bit when I am on SMP/No pay, even though, obviously, by the end of the full 52 weeks of maternity I will not have 'earned' anywhere near the higher rate threshold. So I presume I'll lose out on the vouchers massively if I get a tiny percentage pay rise.