Childcare vouchers...

[HappyDaddy]

Hi all,

I'm being put forward for a job where the salary is slightly less than my minimum requirement. However, they have a childcare voucher scheme in place. Does this make up the £1000 ish I will lose from taking the lower salary or does it actually come out of your salary somewhere?

Hope that makes sense, cheers.

Depending on your salary and tax code, childcare vouchers typically save the employee about £1,000 p.a. if they take the full amount allowed tax free. Which should mean you break even.
When you say you will lose £1000 would that be gross or net of tax? If gross, then you will be up on the deal!

They are offering about £1k gross less than my minimum requirement. Just want to make sure I can still afford everything I need to.

Thanks for your help.

to clarify HappyDaddy it does come out of your salary but gross so yousave teh tax on it. You can opt to give up (about)£50 per week in exchange for child care vouchers (that most nurseries and childminders will take) which is £2,600 per annum but you save the tax on that.

To realise the saving you would need to have a child in childcare who will take the vouchers and cost at least £50 per week. Otherwise you're out of pocket.

Does that make sense?

Ah so it would actually replace £50 of what I pay in nursery fees, at the moment? Doh!

Absolutely

For example I pay CM £350 (roughly) I have £250 (roughly) deducted from my salary and paid to my Cm in vouchers. But this which only reduces my take home salary by (around) £170. So £600 of childcare costs costs me about £520.

if your DW works she can take the same allowance too.