childcare vouchers/ help with paying for childcare

[bumbleandbumble]

I have recently gone back to work full time. I have stayed at home so never needed childcare.

How do I get/claim vouchers or tax credits through my work? do I sign up online? I am getting swamped with childcare and panicking how I will afford it during the school holidays?

You just need to ask your work - HR or payroll would be best - if they offer the childcare voucher scheme and if they do they'll tell you what you need to do.

You apply for tax credits to HMRC, are you working more than 16 hours? It is also based on household income, not just yours.

Are you earning more than national minimum wage? If so, ask employer about childcare vouchers.
Vouchers are a salary sacrifice so taking the value of them off your wage must not result in you getting below NMW.

Are you using registered/approved childcare? Vouchers or tax credits can only be used for registered/approved care.
You can't get both vouchers and tax credits. There is a 'better off' calculator on the HMRC website (may now be on gov.uk)

You can get both vouchers and tax credits, however, they deduct the voucher amount from Childcare cost.
Unless this has changed but I can't see why it would.

Also, I've never heard about the national minimum wage thing.

It can't be correct as it takes me under minimum wage (if my maths is correct)

Your company has to pay at least the minimum wage and the salary you sacrifice in exchange for childcare vouchers is no longer part of your salary therefore you need to earn at least the minimum wage after the deduction. You can't salary sacrifice a statutory entitlement. If you do, the company is breaching the NMW legislation.

See here

I will look at the link tomorrow. What if you are paid a salary rather than per hour? It saves you money regardless tho and you'd be saving it also? I imagine if near min wage tho, tax credits would be the better option.

This must be a recent change? I no longer receive tax credits but the last time I renewed I asked and they didn't mention min wage at all nor any year before that. (Only two)

It's nothing to do with tax credits though, so it wouldn't come up on a tax credit application - it just relates to childcare vouchers which are technically a non cash benefit provided by your employer. For tax credit purposes, as said up thread, you can't claim for tax credits for childcare paid for with childcare vouchers.

Oh, and it doesn't matter whether you're paid hourly/salary. And yes, if you're close to minimum wage, tax credit help is probably better financially.

You definitely used to be able to tho and it was part of the questionnaire. It was mentioned on the end of year form and when I spoke to them on the phone they told me if I received vouchers to take that cost off. Eg if Childcare is 840 a month, take off 243 and that's the amount you pay. They said it was because they 'give' you the rest which used to piss me off massively because they didn't, it was my money but they did 'give' me the tax free saving.

Like I say, I've never heard of the min wage bit so I'm surprised it's not been mentioned. I earn approx 20k and DP quite a bit more so I seem to be in the awkward place where I can't claim either technically.

I wonder if it will get me a payrise???

You can claim both but not for the same childcare. Like tallulah says if childcare is £1000 a month and you receive £200 vouchers you tell tax credits your childcare costs are £800.

Min wage is correct you can't can't salary sacrifice below it.

Tallulah you can claim vouchers on 20k that wouldn't take you below min wage.

Soon to be six... I'm a dick. Just realised, I'm working it out on take home pay rather than pre tax. Ha! I was getting really stressed about what I'd do.