Childcare Vouchers/Salary Sacrifice
The Childcare Voucher Scheme enables you to take part of your salary in childcare vouchers before it is subject to Income Tax and National Insurance contributions.
Both parents are eligible to claim Childcare Vouchers, provided both parents are in employment.
Operated through the Salary Sacrifice scheme, your employer will also be exempt from NI contributions to the value of the vouchers provided.
To start using Childcare Vouchers ask your employer if they are associated with one of the current established providers. If they are the procedure for you to join the Scheme will already be established. If they are not, you may like to ask if they would consider adding it as part of their benefits package they offer to staff.
Working Tax Credits
If your child attends a registered setting you may be entitled to extra help with the cost of childcare. This is called the childcare element of working tax credits.
You can only receive this extra assistance if you and your partner work for at least 16 hours a week. Unless one or both of you, are unable to do so due to incapacity.
The childcare element can help with up to 80% of your childcare cost up to a maximum of £140 per week for one child and £240 per week for two or more children.
The amount you can claim is added to your working tax credit, is dependent on your income, and is paid directly to the main carer.
To check whether or not you are eligible, and to make an immediate claim go to www.inlandrevenue.gov.uk/taxcredits
Child Tax Credits:
To qualify for tax credits, you must be aged 16 or over and usually live in the United Kingdom (UK). For Child Tax Credit you must have a right to reside in the UK.
For more information about these rules go to www.hmrc.gov.uk/taxcredits and follow the link for Tax credits – who qualifies?
9 out of 10 families are eligible for tax credits. If you are responsible for at least one child under 16, who normally lives with you, you may receive Tax Credits. The amount received is dependent on the house hold circumstances. When you contact HMRC they will ask for your income, your partners income (if you have one) and the number of children in your household.
The table below is for the tax year 6 April 2011 to 5 April 2012.
|Annual Income||One Child||Two Children||Three Children|
Child Tax Credit will be paid in addition to Child Benefit.
If you would like a claim pack, or more information on Child Tax Credits you can call the Helpline on 0845 300 3900 or click on the links below.