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Are you benefiting from tax efficient childcare costs?
Did you know you could save up to £933 per year per parent?
The provision of Childcare Vouchers allows working parents to save up to £933 in PAYE and National Insurance contributions and also benefits the employer by reducing National Insurance contributions. This is because Childcare Vouchers may be provided to employees free of PAYE tax and NIC.
It's simple - an employee swaps part of their normal salary for Childcare Vouchers and can save up to:
|Basic Rate Tax Payer (20% PAYE & 12% NI)||Higher Rate Tax Payer (40% PAYE & 2% NI)||Additional Rate Tax Payer (50% PAYE & 2% NI)|
|Max monthly vouchers||£243||£124||£97|
|Max annual vouchers||£2,916||£1,484||£1,166|
|Monthly tax & NI saving||£78||£52||£51|
|Annual tax & NI saving||£933||£623||£606|
|Employer NI saving at 13.8%||£402.40||£204.79||£160.90|
It's simple! It makes childcare cheaper for the employee, reduces costs to the employer and the only person who loses out is the taxman. Find out about Childcare Vouchers