Childcare vouchers and pay rise to 40% tax

[Barbeasty]

I currently fall in the standard rate tax band, and take the full value of childcare vouchers through my company's scheme.

I am about to be promoted and will move into the 40% band.

I'll have to dig out the details of when exactly I joined the scheme but, if I joined prior to when the rules changed so that higher rate tax payers couldn't claim as much through childcare vouchers, will I still be able to claim the full amount?

I can't see that scenario covered in any of the HMRC details/ faqs.

If you were in the scheme before 6 April 2011 and have had the vouchers ever since, then the cap shouldn't affect you. However if you joined after that date, or stopped claiming the vouchers and then restarted, then the maximum vouchers you can claim each month will reduce to £124.

I thought though it worked out the same, that was why it was switched. So 40% tax payers didn't get a bigger break than the standard ones?

Watching with interest as DH just starting a new role that takes him just into 40% bracket and we both take the full amount at the moment. There is also the possibility a bonus of a couple of hundred pound will tip me over as well.

Argh, they're really really useful.

I will not pay a single penny of tax at 40p due to salary sacrifice pension but I have been bumped into the £124 only bracket. Great. Roll on 2015.

Please ask to see the earning assessment that your employer has to do for you each year and doublecheck the information. Mistakes do happen and you cannot backdate voucher orders if you don't notice an error until, say, Dec. it is always worth checking!

Yep, if you joined before the changes took place, and have continually been in the same scheme since then, you will get the full £243, and save 40% tax.

If you joined after that, your max voucher amount will go down, but the tax saving will be very similar - you won't be (very much) worse off.

Notverygirly - check that out. The basic / higher rate assessment should include pension contributions if they are made through salary sacrifice. Best I can find atm is here but I'm, sure there will be some HMRC guidance somewhere.