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childcare vouchers through a salary sacrifice

3 replies

northerngoldilocks · 26/03/2014 11:36

Wondered if anyone could help me. If I sacrifice salary to receive childcare vouchers (243 per month), should the total amount of vouchers be reflected on my P11D and therefore reduce the amount of personal allowance available to me?

For clarity I sacrifice salary to an equal amount of the vouchers received.

Many thanks

OP posts:
sleeplessbunny · 26/03/2014 11:39

No, they are tax-free (up to a limit that depends on your income tax band) so the amount should be deducted from your gross pay and does not impact your tax-free allowance. They should not show up on your P11D AFAIK (well mine certainly don't).

northerngoldilocks · 26/03/2014 12:29

Thanks -that was my understanding too but a colleague is being told something totally different by hr

OP posts:
Financeprincess · 26/03/2014 21:19

Then your HR team are dolts! This sort of thing won't appear on the P11D because it isn't a benefit in kind.

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