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#279985 - 3rd Jan 2009 10:40pm Childcare Vouchers or Tac Credits?
MissGuided Offline

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Registered: 18th Jul 2008
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Hi
Does anyone in the know, know what would be best to do - claim the Childcare Element of Tax Credits or do salary sacrifice (childcare vouchers through work)?

Which would work out best in terms of value for money?

I have 2 kids who use school clubs, our weekly bill is currently 54.
Thanks.
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#280070 - 4th Jan 2009 9:18am Re: Childcare Vouchers or Tac Credits? [Re: MissGuided]
Softy_Southerner Offline

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Registered: 2nd May 2008
Posts: 4092
Loc: Back in Devon
Hi MisGuided
My understanding is the vouchers save you a bit more as they are taken out before you are taxed.
Have a read of this, i tihnk it will answer most queries.
http://www.moneysavingexpert.com/health/childcare-vouchers
Good Luck!


Edited by Softy_Southerner (4th Jan 2009 9:18am)

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#280118 - 4th Jan 2009 12:41pm Re: Childcare Vouchers or Tac Credits? [Re: Softy_Southerner]
MissGuided Offline

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Thanks Softy - the problem is that I have been doing both and have just been informed by the Tax Credits people that you cannot. You either claim the childcare element of tax credits or you do the vouchers. We have been doing both for a few years and it was only recently that they put the fear of god in me by telling me this is not allowed. I am worried now what to drop. I think we will drop the vouchers until April - then they cannot fine us 300 or whatever it is they'll do if they ever find out (though in my experience you could probably get away with a lot the system is so badly administrated!!). Then from April we will not claim the childcare element and do vouchers instead because next year is going to be very complicated for childcare and I can't be bothered with the Tax Credits giving us money and then telling us there's an overpayment. They've messed us around enough times in the past!!!
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