Not sure if this is the right place for this question but am trying to work out a financial calculation.
I will be on SMP during maternity leave and receive 243 pounds of child care vouchers on top. I have read that I will still be eligible for working tax credit while on SMP. As SMP is so low, I guess I could get quite a bit of working tax credits.
I think two days a week of nursery for dc 1 will be about 350 quid a month.
So I am wondering if I should put all the childcare vouchers towards the fees OR if I should pay the full amount because then a larger proportion would be covered by working tax credit. (and I could bank the vouchers for dc2).
Last time I spoke to the tax credit people they pointed out that salary sacrifice child tax vouchers reduce your salary so increase your tax credits but that if you reduce your childcare fees with the vouchers, you can get fewer tax credits and end up worse off..
not sure how to work it out!