Child tax credit & childcare vouchers - anyone in receipt of both?

[DelGirl]

I receive child tax credit (but not working tax credit) and my company is now offering child care vouchers. Just wondering if it's worth the hassle and are you really heaps better off?

I could phone them but i'm not sure I could 100% convinced of the answer iykwim.

We get the basic child tax credit (about £500 odd a year) and DH gets the vouchers from work. I found it hard to get any concrete info about whether one affects the other.
Bumping this for you in case someone knows more about it.

We get very small child benefit. No working tax benefit, becasue dh And I combined, earn too much.

But the vouchers are brill. I take full entitlement £243 every month . Saves you £1000, yes £1000 per year. Brilliant.

thanks. I know it does affect your credit, I just wondered how much. tbh I don't want to upset the apple cart and make things more complicated if it's just a few £ iykwim. that sounds like i'm doing something illegal doesn't it, which i'm not

hmm, perhaps i'll call the tax credit office. Accor says there is a calculator but I can't access it.

i get the vouchers (full quota) easy to use and makes the childcare cheaper because they come otu before tax and NI i think.

just wish it applied to each child rather than a set amount. i have 2 in nursery and could use the £240ish entitlement for each an DH's work doesn't do them

as far as i know the one doesnt effect the other, well its not ever been mentioned to me

but the child tax credit is for the nursery, thats what its based on I thought. Currently, the credit pays for about 70% of dd fees

ah we don't get any of our childcare paid for by the tax credits just get the standard basic amount

Isn't there a 'childcare element' of the child tax credit? It may this that is affected? Gosh it's confusing!

I didn't think childcare vouchers and tax credit would affect each other, but I could be wrong. However, you should check if you have a pension through work how they treat vouchers for pension purposes. Technically vouchers are a salary sacrifice scheme in which you are paid less and get given the vouchers without being taxed on the amount. My employer takes off the full pension contribution first (and makes its contrib) which means my pension won't be reduced by that although it does of course cost more.

If your partner or husband's employer offers vouchers, you can both get them up to the limit, and they're not means tested - in fact, well paid people save more tax!

Definately get the vouchers it is a big saving and it doesn't affect your tax credit.

just a note about the pension thing - it's only for a few years though, while your children are young - we were told it was negligable

if your employer doesn't offer this, emcourage them to do so, it's a great savings for both lower and upper taxpayers
(and would not affect child tax credit entitlements)

perhaps it is the childcare element which I think most of mine is. I'm going to call the tax office. It is a salary sacrifice but i'm pretty sure your salary stays the same for pension purposes. will check, thanks.

right, i've spoken to them and I think I get it. and I think i'll be about £50 better off a month which isn't bad and worth claiming for. Just hate paperwork and want less not more . oh, just realised I won't have to pay the tax either durr but I can't work that out just now, too complicated.

sold . Hope i've work it out correctly!

elkiedee, just checked about pension and they use the notional salary for pension/benefit purposes. i.e salary before the sacrifice

That's good

i'm joking!

You can't claim the childcare from working tax credits and the childcare vouchers you can only get one or the other.
You usually end up better off or no worse off if you are getting more than 10.50 a week through child tax credit when claim you full childcare allowance.

Could someone please clarify what the income threshold is for the childcare element of tax credits? I spend £110 a month on childcare. Would I be better off if I could get the childcare element than using vouchers or would it work out the same?