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Tax help please

3 replies

IslaMann · 08/02/2020 08:29

I'm looking for advice please.
Was using the tax free childcare voucher scheme until recently. So £243 was taken from my wage before tax calculated and it went into my childcare voucher account. I've recently stopped the scheme because there is enough now "banked" to cover our childcare needs up until DD starts school in Sept.
I am a basic rate tax payer so had calculated in my head that with tax, NI, pension etc I'd be paying around 28% tax on that £243, so should have recieved around £180 more in my take home pay. But I'm actually receiving £120 more. That's 50% stoppages. Does this sound right? I will be speaking to payroll on Mon (but quite honestly, they've been pretty useless in previous queries).

OP posts:
nannynick · 08/02/2020 08:55

That sounds like the Employer Supported Childcare scheme, commonly called childcare vouchers.
It is a salary sacrifice scheme, so by taking £243 per month you were lowering your taxable income. So you are right to think about National Insurance as well as Income Tax. It also can affect pension contributions.

www.thesalarycalculatlor.co.uk may be useful. Using data from your latest payslip, put in your gross pay figure and set the pension options as closely as possible to how your pension is calculated.

Look at other deductions shown on your payslip, such as student loan.

IslaMann · 08/02/2020 09:26

nannynick thanks. According to that link I should be bringing home £60 more which is what I originally calculated. So will def be pressing payroll for answers on Mon!

OP posts:
nannynick · 08/02/2020 09:42

Compare last two month payslips side by side. See if you can see what has increased more than expected in terms of the deductions. Then you have a specific thing to query with payroll.

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