Childcare Voucher Scheme

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Basic Rate Taxpayer 20 tax 12 NI Parents in the scheme before 6th April 2011 Parents who join the scheme after 6th April 2011 Weekly tax exempt amount £55 £55 Monthly tax exempt amount £243 £243 Annual tax exempt amount £2,916 £2,916 Savings £933 £933 Employer’s NI Savings £402 £402 Higher Rate Taxpayer 40 tax 2 NI Parents in the scheme before 6th April 2011 Parents who join the scheme after 6th April 2011 Weekly tax exempt amount £55 £28 Monthly tax exempt amount £243 £124 Annual tax exempt amount £2,916 £1,484 Savings £1,225 £623 Employer’s NI Savings £402 £205 Additional Rate Taxpayer 50 tax 2 NI Parents in the scheme before 6th April 2011 Parents who join the scheme after 6th April 2011 Weekly tax exempt amount £55 £22 Monthly tax exempt amount £243 £97 Annual tax exempt amount £2,916 £1,166 Savings £1,516 £606 Employer’s NI Savings £402 £161 new NI rate applicable from April 2011 You can order vouchers for greater than this amount if that makes payment easier for you and your child care provider.. How to work out how much to sacrifice each month To help decide how much salary to sacrifice each month the Employee should: a) calculate the total amount spent on childcare annually b) divide this figure by 12 Whilst any value of childcare vouchers may be purchased through salary deduction, only up to £243 basic rate taxpayer per month will attract tax and National Insurance relief Each submitted Salary Sacrifice Agreement will be checked to ensure that the sacrifice value does not result in an Employee’s salary being less than the National Minimum Wage or the Lower Earnings Limit (this is one of the qualifications of the Scheme).. 3.3 Types of childcare valid for payment with Childcare Vouchers, subject at all times to holding valid registration or approval certification: Registered childminders, nurseries and playschemes Out of hours clubs on school premises run by a school or local authority Childcare Schemes run by school governing bodies under the extended sch


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