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View Full Version : Some parents worse off using childcare vouchers!



Minstrel
05-08-2009, 08:41 AM
I didn't realise that Tax credit payments went down if you chose to pay via childcare vouchers.

Agree that they shouldn't be scare mongered but I think its mean of the government not to point out the penalties and not just the benefits of such schemes.



http://blog.moneysavingexpert.com/2009/08/04/ed-balls-reply-to-my-childcare-agitation-your-suggestions-urgently-needed/

Lo0py
05-08-2009, 08:44 AM
There is a section on the inland revenue website that explains the benefits and drawbacks of childcare vouchers versus tax credits

http://www.hmrc.gov.uk/childcare/interaction-tc-cv.htm

FizzysFriends
05-08-2009, 08:49 AM
My parents do one of the other, tax credits if they can and if they don't qualify then they use the vouchers.

FussyElmo
05-08-2009, 08:51 AM
The only parents I have use the vouchers because they dont get much tax credit and the vouchers are a good saving for them.

I always tell any perspective parent to ring tax credit first and if they dont get much help then I would recommend the vouchers.

Mouse
05-08-2009, 08:51 AM
I didn't realise that Tax credit payments went down if you chose to pay via childcare vouchers.

Agree that they shouldn't be scare mongered but I think its mean of the government not to point out the penalties and not just the benefits of such schemes.



http://blog.moneysavingexpert.com/2009/08/04/ed-balls-reply-to-my-childcare-agitation-your-suggestions-urgently-needed/


I read about this a while back. None of my parents claim tax credits to help with childcare, so are better of using vouchers. I do have a bit in my info telling them to check whether or not vouchers are worth them using if they claim tax credits.
I'll keep that link as it might be useful to pass on to some parents. Thanks!

Blackhorse
05-08-2009, 02:29 PM
thanks for posting this.. I didnt know that at all.

I think it is good if we know about all these things as I feel it is good if I can help/advice parents as not all of them know these things either!!

Chatterbox Childcare
05-08-2009, 03:54 PM
It is my understanding that the tax credits want to know income before tax and that is what I have always given, must check otherwise I could be out of pocket.

zillervalley
05-08-2009, 05:48 PM
mmm interesting will check with my parents, to see if they know this, thanks fore the info
ziller

nannymcflea
05-08-2009, 05:56 PM
My parents do one of the other, tax credits if they can and if they don't qualify then they use the vouchers.

Same here, I have parents using both.

helenlc
05-08-2009, 08:15 PM
I make parents aware of both options. Some come knowing they are eligible for tax credits. For those that are unsure, I tell them to ring Tax Credits and if they are not eligible to claim those, then enquire about vouchers.

When I worked as a nanny, the parents were not entitled to tax credits and so got vouchers. They could both claim these also (in their 2 different) jobs so it was more worth while for them than tax credits.

Minstrel
06-08-2009, 12:37 PM
It is my understanding that the tax credits want to know income before tax and that is what I have always given, must check otherwise I could be out of pocket.

You're right Debbie they do. But when parents want help covering childcare costs, they only help out with the prportion left over that the vouchers do not cover. ie the cash top up that parents give us. So if they are entitled to 80% help then they will only get 80% of the cash top-up and not of the whole childcare cost.

I hope this makes sense. Its usually you having to explain things to me :laughing: