Childcare vouchers or new tax-free childcare scheme?

[psychocandy]

The £28 is the weekly exempt limit because you're a higher rate tax payer. Under the new tax free scheme you could get up to £500 per quarter and the gov will chip in £2 for every £8 paid to the childcare provider via an online account if you qualify.

Always wondered why they told me £28.....

So new scheme I chuck in £500 a quarter, gov chuck in £125. Total £625.

Obviously, less than this at £28 a week. Thing is my daughter is in school full time so this is just needed for holiday clubs etc. so £28/week is plenty. Tax savings this way are way more.

Of course theres alway the risk of being left with £100s of childcare vouchers and no way to spend them.

[psychocandy]

I thought the new scheme was still delayed after it was supposed to start early this year - has it come into effect yet? I've always tried to do directly contracted childcare (contract with nursery direct with MyCo and pay them directly) instead of faffing with vouchers, much easier but guess not an option with an umbrella. The maximum you can get is determined by your total salary.

October I believe it started.

[TheCyclingProgrammer]

I thought the new scheme was still delayed after it was supposed to start early this year - has it come into effect yet? I've always tried to do directly contracted childcare (contract with nursery direct with MyCo and pay them directly) instead of faffing with vouchers, much easier but guess not an option with an umbrella. The maximum you can get is determined by your total salary.

[northernladuk]

BOOM!

You line em up and I'll knock em down

[Craig@Clarity]

Have you tried a search?

BOOM!

[northernladuk]

Not seen you use this canned response before

Have you tried a search?

[Craig@Clarity]

Have you asked your employer?

Not seen you use this canned response before

[Craig@Clarity]

Currently get childcare vouchers via umbrella. £3 charge and its capped at £28 per week (dunno why).

Now I think I'm right in saying that this gets deducted before employer NI, employee NI, and PAYE. (So that £31 would probably end up about £15 in my pocket).

Much better than new scheme which, I think I'm right, is just an account you set up and the government top up 20%?

So better stay in original scheme? Closed to new users now so you can't leave.

The £28 is the weekly exempt limit because you're a higher rate tax payer. Under the new tax free scheme you could get up to £500 per quarter and the gov will chip in £2 for every £8 paid to the childcare provider via an online account if you qualify.

[northernladuk]

Public sector IR35 so umbrella is only viable option. Beeen there done that with ltd etc etc etc etc etc.

Have you asked your employer?

[psychocandy]

Shut it you!

Might be worth considering if he's a low earner and this makes the difference between it being worth it Ltd vs Umbrella.

Public sector IR35 so umbrella is only viable option. Beeen there done that with ltd etc etc etc etc etc.

[b0redom]

Useful

Shut it you!

Might be worth considering if he's a low earner and this makes the difference between it being worth it Ltd vs Umbrella.

[northernladuk]

I just paid the legal max direct from my Ltd Company £273 iirc.

Currently get childcare vouchers via umbrella

Useful

[psychocandy]

I just paid the legal max direct from my Ltd Company £273 iirc.

Yeh I used to do that when using limited.

[b0redom]

Currently get childcare vouchers via umbrella. £3 charge and its capped at £28 per week (dunno why).

Now I think I'm right in saying that this gets deducted before employer NI, employee NI, and PAYE. (So that £31 would probably end up about £15 in my pocket).

Much better than new scheme which, I think I'm right, is just an account you set up and the government top up 20%?

So better stay in original scheme? Closed to new users now so you can't leave.

I just paid the legal max direct from my Ltd Company £273 iirc.

[psychocandy]

Currently get childcare vouchers via umbrella. £3 charge and its capped at £28 per week (dunno why).

Now I think I'm right in saying that this gets deducted before employer NI, employee NI, and PAYE. (So that £31 would probably end up about £15 in my pocket).

Much better than new scheme which, I think I'm right, is just an account you set up and the government top up 20%?

So better stay in original scheme? Closed to new users now so you can't leave.