childcare vouchers, how do they work?

[StarMeKitten]

I'm am.entitled to childcare vouchers through my job so from what I understand you get them from your wage tax free..

But how does it work, do you get sent them? Do all nurseries accept them etc

TIA

:-)

We use them from DH's work and really the word voucher doesn't describe how they work very well.

The voucher company liases with your employer and money is taken from your salary before it is taxed and put in another account (a bit like a paypal account). You can then transfer from the voucher account to a childcare provider either by telephone or internet (so long as ofsted registered).

It's really simple.
Most nurseries and childminders take them (they'd be silly not too).
HTH

Thank you, makes perfect sense now! :-)

a couple of further questions that I cannot find the answer to via google : we are already claiming "vouchers" for our dd's childcare through my dh's work but my manager seems to think I could claim for vouchers for this through my work too, is this true?! I earn a lot less than him so would be entitled to more I think, so maybe it would be better for me to claim them? Also, our son is in school but vouchers would be useful to claim for holiday clubs, is there is limit per family or per child?? thanks in advance!

You and your DH can each claim them up to the current maximum per person. The maximum depends on (i) whether you were claiming vouchers before 6 April 2011, and (ii) whether you are higher rate taxpayers. If you are both basic rate taxpayers then I think you are both entitled to claim the maximum of £243 per month. If higher rate, you can only claim that much if you were claiming them before 6 April 2011 - if you weren't the total you can claim has now dropped to £124 per month. I think it's even less if you pay the 50% tax rate.

Check out here if you haven't already

thanks suburban.. dh is a higher rate tax payer and I am a basic rate tax payer, in fact I only pay about £80 a month tax (!) so can't work out if it would make sense for me to claim the maximum amount in vouchers? I know there is working tax credit (or whatever its called) but I am sure we don't get that because dh earns too much. Honestly, between us we have 4 degrees - surely it can't be that complicated for us to understand? (they are all arts degree though.. )

I would imagine it still makes sense for you to get the maximum if you pay more in childcare costs than the sum of the vouchers you and your DH can buy, because they come from your gross salary rather than net. It will mean you pay less tax overall.

The best thing for you will be for your DH to claim the maximum he can and for you to claim the rest (if you don't need both of you to claim the maximum). Your DH pays the most tax overall as a higher rate taxpayer so you'll save most through him claiming the maximum than by you doing so.