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Child care vouchers and skimming the higher rate tax band

3 replies

Notverygirly · 08/04/2014 21:56

Hi there,
Last tax year I was able to take the full £243 of childcare vouchers because I was on Mat leave for half the year.
This tax year I would pay 40% tax band on a couple of hundred pounds, but after pension deductions, I am well under the threshold. For April the lower voucher amount of £124 has been deducted.
Any ideas?
Thanks

OP posts:
LittleMissGreen · 09/04/2014 09:27

DH was in this position for a while - just taking the childcare vouchers out took him under the limit, let alone his pension. He spoke to his employer and they changed it to him getting the full £243 (presumably his employer - large company, checked with HMRC before they did that).

baffledmum · 14/04/2014 21:36

Contact your payroll team and ask for a copy of the earnings assessment that they will have done recently. It is that which decides the level of vouchers you may request and you should check that everything has been entered correctly.

You mention pension contributions. Are these done using salary exchange or on a net pay basis?

Mumoftwoyoungkids · 15/04/2014 09:22

You need to talk to your payroll people.

Dh is in e same position. The payroll team seem to have to decide which band they are on. It's a bit weird. He goes and reminds them that he pays into a pension, they do a quick calculation and then put him in the £243 band.

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