Childcare Voucher Schemes After 6th April 2011

Childcare Voucher Schemes After 6th April 2011

March 16th 2011 2:52 am

general

If you are a higher rate taxpayer next tax year (earning more than £42,475 gross per year) the rules for exemptions within C ...

508 views

If you are a higher rate taxpayer next tax year (earning more than £42,475 gross per year) the rules for exemptions within Childcare Voucher schemes are changing for you. If you have not joined an approved Childcare Voucher Scheme with your employer or a third party yet, you should hurry to join before the end of this tax year (5th April). Within the current tax year, 2010-2011, everyone is entitled to a tax and NIC free exemption from the first £55 per week (or £243 a month) of salary spent on Childcare Vouchers by their employer within an approved salary sacrifice scheme. From 2011-2012 however, higher rate taxpayers will be restricted to £28 per week, and top rate taxpayers (those earning over £150000) will be restricted to £22 per week of tax relief. This results in the following tax differences:
  • A higher rate taxpayer will pay an additional £602 a year in tax/nics, and your employer will pay an additional £197 per year in Employers NICs.
  • A top rate taxpayer will pay an additional £910 a year in tax/nics, and your employer will pay an additional £241 per year in Employers NICs.
We have incorporated a Childcare Voucher Salary Sacrifice option within our Tax Calculator for you to experiment with. It includes the next tax year 2011-2012 and goes all the way back to 2003.

be smart. find an accountant online now. it's easy!

what type of accounting work do you need help with? choose below.

Disclaimer

We are a lead generation facility for accountants located across the UK. We provide our visitors with the ability to search for accountants directly or provide details of the work they require and seek out accountants looking for clients with similar circumstances. Users of this website are assured that their personal details are not distributed to more than one accountant and that accountant is then allowed to contact the user to discuss the service the accountant can provide. All data transmission on this website and administration facility is carried out under full 256-bit SSL encryption.

Data Protection Registration Number ZA200013

Please read our full disclaimer.