Child Vouchers thru company associated partner

[ChandraSP]

Hi,
Sorry if this question already answered before.

My company offers childcare vouchers to the employees. These vouchers are accepted by most of the Nurseries. Maximum of £217 child care vouchers can be taken per month and this will be deducted from our base salary. Effectively depends on tax bracket we can save a maximum of £87 per month. Is it comes under Public funds?

As I am paying £675 a month for my son's day nursery, the question is, can I take these vouchers or not?

John, I see your answering many of tax queries...comments please..

Cheers
Chandra

[John]

No problem with Public Funds there.

Your employer is providing those vouchers. The tax saving certainly does not equate with you obtaining Public Funds. So no problem for you. The £217 per month equals the £50 per week maximum under the legislation that came into force in April this year.

The voucher scheme does not work financially for everyone. Those claiming tax credits in respect of childcare costs cannot have it both ways. Either that claimant is paying the child care costs, or they are not, and if the employer's voucher is paying for the child care then tax credits in respect of child care costs also reduce, at least to the extent of the voucher amount.

But I guess you are not yet able to claim tax credits, so the scheme certainly works for you.

[ChandraSP]

John,

Thanks a lot. Yes, I can't claim any of these credits and not sure whether Vouchers given by company comes under credits or not. Eventually I pay £80 less tax (every month) if I take the vouchers, so thoght of clear my doubts from the experts.

More over I don't want any trouble at the time of ILR.

Thanks once again for your timely advice.

Cheers
Chandra