Help with childcare vouchers, please.

[Tamaramasalata]

Potentially very stupid question.

DH and I both work, basic rate taxpayers. DH is changing his hours, and we are going to have to use an after school club a couple of times a week for 6 year old DS. The cost will be around £100 per month. This is the first time we have used paid for childcare.

Both our companies offer childcare vouchers (salary sacrifice). We can sacrifice up to £243 per month each. All the websites say that both parents can use vouchers, to get double the benefit - but am I right in thinking that as our bill is relatively low, only one of us can use vouchers? and we will save 20% of the £100 per month bill? We can't both use vouchers and save 40% of £100, can we... the second parent can only use the scheme if the monthly bill exceeds £243...right?

Not sure I've explained it very well. :S

No you can't save 40 percent. You are allowed to buy as many vouchers as you want though and save them up for the future.

You can both use them, but you wouldn't save 40% because you're swapping your salary for the same amount of vouchers, without paying tax on that part of your salary. It may be simpler for just one of you to use them if you're only using 100 worth of vouchers. You also save the NI contributions on the amount you sacrifice, so you save 32% in total.

You can both use them, but you wouldn't save 40% because you're swapping your salary for the same amount of vouchers, without paying tax on that part of your salary. It may be simpler for just one of you to use them if you're only using 100 worth of vouchers. You also save the NI contributions on the amount you sacrifice, so you save 32% in total.