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Tax credits v salary sacrifice

2 replies

SusanCK · 06/09/2010 20:27

Hello!
I've only just got around to joining Mumsnet and this is my first post. Of course, it's about MONEY ...!!

I'm trying to work out if my child tax credits would be affected if I accepted my employer's offer of salary sacrifice scheme. And if I can't have both, which is most worthwhile (especially considering that I expect to be losing tax credits at some point since the emergency budget but haven't received any confirmation about that). I've been trying all day to get through to tax credit helpline with no luck. Also, have tried their online calculator but as my work situation is a bit complicated (employed AND self-employed) it doesn't really work.

My situation is this:
Husband earns c.£38k
I earn £13k for 18 hours per week from an employer
I also expect to earn around £3k this tax year from self-employed freelance earning.
I spend £300 a month on childcare.
I understnand my employer can offer me £243 per month in child care vouchers.
I have been getting around £500 a year in tax credits.

Does anyone have any idea what's most beneficial?!

Thanks for any help offered.

Susan

OP posts:
seeyoukay · 06/09/2010 21:58

www.entitledto.co.uk to work out your benefits.

belledechocolatefluffybunny · 06/09/2010 22:03

I don't think it would make any difference whatsoever as your husband earns over the threashold just by himself. It's likely with just his income that the £500 you already recieve will be stopped as the government are planning on stopping child tax credit for those that earn over 35K.

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