Hi - I'm on the childcare voucher scheme (after 2011 but before 2018) - could someone confirm please - if you have a salary increase and became a higher rate tax payer in the tax year but the Basic Earning Assessment done by my Employer says you were a basic rate tax payer would HMRC claim back the tax from you at the end of the year?
From what I have read your Employer carries out a basic Earnings assessment at the start of the year identifying you as basic, higher or additional rate tax payer and then the assessment remains valid for the whole of the relevant tax year and is an assessment made based on the information at the start of the year. The value of your childcare vouchers will be based on this assessment.
Once completed, this assessment will remain valid until the start of the next tax year, regardless of any changes in circumstances throughout the year; therefore your tax and NI exemption will not change throughout the year.
I'd like to build up my childcare voucher as much as possible this tax year (as it's likely I will be then assessed as a higher rate tax payer for the next Basic earnings Assessment) - but I don't want to put the full amount in only for me to be taxed at the end of the year!
Can anyone help/advise?
Thanks!