Busy Bees Vouchers - make me understand please

[Mikafan]

Hi,
I've applied for these vouchers but I'm not 100% sure of how they work. I think - but am not sure - that the cost of the childcare gets taken out of your salary each month before tax and NI hence making your salary lower hence paying less tax and NI - is that correct?

My vouchers are going to be paid directly into the bank account of our childcare. The guy on the phone said my husband could claim too if his company used Busy Bees (which they do) but how would that work - the childcare would be charged twice, so this is the bit I can't get my head around . Can anyone explain it to me pleeeeease.

Thanks.

I think you can both claim/ sacrifice your salary up to £243 per month.

Assuming your monthly childcare is £1,000 then £243x2 would be paid by childcatre vouchers and the rest directly by you/ DH.

Our vouchers are with Accor rather than Busy Bees, but the principle is the same.

You will get a deduction on your payslip of £243 (max), which as you say is before tax and NI. This amount of money will then be credited to your Busy Bees voucher account, and from that you can set up payments to your childcare provider (who must be registered).

If your DH's firm do the same, then he will also get an account, either with BusyBees, or with another provider.

My DH and I both get vouchers, and we alternate payments to our childcare providers. It's either that or have 2 payments, 1 from each of our voucher accounts go to our childcare provider.

does that help?

You get x as your gross salary. They take 243 a month (or however much you decide)out of that. You then pay tax and Ni on x-243.

If your husbands company also do a voucher scheme, then he can also do this (lots of diff companies out there). If your childcare is more than 243 per month, but less than 486, then you can each nominate an amount that totals whatever you need to pay the nursery.

I think it does affect your pensionable income. Not sure.

243 paid towards your nursery costs, you then pay nat ins and tax on the remainder of your salary. i.e you wont be actually be down 243 - I pay £78 less in tax per month as does my husband. Together we pay £156 less in tax.

but thats the thing, the costs in total are only £120 a month (its a morning and after school club) so that figure will be taken out of my salary so nothing will be taken from DH's so it doesn't make sense for him to claim to - or does it?

Do you require any holiday childcare? Usually you have to have the same amount deducted every month during the tax year - so if you need to pay for childcare in the holidays, then you would want to save up vouchers during term time and then use them up in the holidays.

If you don't need holiday cover, then yes, only any point in having vouchers for the £120 a month you need.

No, we don't use the holiday club so there wouldn't be any point in DH claiming too.

Thanks for your help everyone.