Childcare vouchers v tax credits

[chjlly]

Hi

Can anyone help?

are you better off with Tax credits or getting childcare vouchers through your employer?

I can start up childcare vouchers at my employment but didn't know if it was worth it as I get help through tax credits

I confess I haven't used it myself yet, but I believe there's a ready reckoner on the tax credits website which will answer your question. Something like this

However, I've been told that 'If you are in receipt of tax credits and particularly the childcare element, then these could be reduced if your receive childcare vouchers', roughly translated as 'provided you only get the basic tax credit (ie the amount everybody gets, non extra related to your income/childcare costs), then you are definitely better of with the vouchers.

If you get much more than the basic £10 a week CTC (i.e. you get at least part of the childcare element of it) then it will almost certainly make absolutely no difference. What you gain on the vouchers will be offset by the loss of CTC. Unless.... you are a higher rate tax payer, or the amount of childcare element you get is low (below the equivalent of the tax saving on £50 a week).

Thanks for your help I shall save the hassle of vouchers and carry on with the ctc