- Cheshire Childcare Vouchers the smart way to save tax and national insurance -spacer
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Cheshire Childcare Vouchers Childcare Vouchers for Parents Childcare Vouchers for Employers Childcare Vouchers for Carers
childcare vouchers for parents frequently asked questions
head buzzing with questions? read on….
Cheshire childcare vouchers
  
frequently asked questions

using the v-payplan to cover some or all of your childcare costs means a change to the way you are paid by your employer and to the way you pay your childcare provider. To help answer some of your initial queries, we have therefore put together a series of typical questions, which we are often asked.

What is the maximum amount I can claim each week in childcare vouchers? Up to £55 per week (£243month) of you salary will be exempt from tax and National Insurance on the voucher plan. You can request more from your employer, however, any additional amount will be subject to tax and NI.
What if my childcare provider hasn’t yet registered on the v-payplan? As long as your childcare provider is registered or approved they will be able to register for the plan. We will send them the relevant documentation.
Can I use vouchers for more than one provider? Yes, but remember to make it clear to your employer how you would like to split your entitlement.
I only use childcare during the school holidays, can I still qualify for childcare vouchers? Yes, simply calculate your annual spend on childcare and divide by 12. This will be the amount you need to claim in vouchers each month.
What can I do if my employer doesn’t offer childcare vouchers? Most employers should be aware of the benefits of childcare vouchers to employees and themselves. Maybe no one has requested them yet. The best thing to do is to forward this site to them and register your interest with us, we can then talk them through the process.
How much will it cost me? Nothing. Your employer will pay the fees to operate the scheme. This is more than covered by the savings in employer National Insurance contributions they will make.
When will I receive my vouchers? Your employer will provide childcare vouchers as part of your weekly or monthly salary.
My annual salary is £35,000, from your table my savings will be less than say someone on £30,000, why is this? Salaries over £33,540pay NI at 1%. So, at £35,000 you pay 1% NI and tax at 22% compared to 11% NI and 22% tax at £30,000 making NI savings at £30,000 greater.
I have heard I have to enter into a salary sacrifice with my employer to take part in the scheme, what does this mean?  A salary sacrifice happens when an employee gives up the right to receive part of the cash pay due under their contract of employment. This usually takes place when that amount of cash is replaced with a benefit in kind—in this case childcare vouchers. To protect your rights, something as important as this needs to be recorded on your employment file. See our resources page for more information.
Will the way my income is structured cause any issues when obtaining a mortgage or other finance? No, a lender will take into account your overall remuneration package.
Will I be better off accepting childcare vouchers in return for a salary sacrifice or by claiming tax credit?

The Inland Revenue states your family will generally be better off accepting childcare vouchers in return for a salary sacrifice if you can answer “yes” to one or more of the following:

your eligible childcare costs are more than £175 per week if you have one child or £300 per week if you have two or more children. In this case you will always be better off accepting childcare vouchers to cover your childcare costs above these limits.

You are receiving tax credits at the family element (£545 per year, or £1090 per year if you have a baby aged under one) or less and you are claiming for your childcare costs.

You pay tax on your earnings at the higher rate of 40%.

Your family will generally be worse off or, at best, no better off accepting childcare vouchers in return for a salary sacrifice if you can answer “yes” to all of the following:

You are receiving tax credits of more than £545 per year (or £1090 per year if you have a baby aged under one) and you are claiming for your childcare costs.

You do not pay tax on your earnings at the higher rate of 40%.

Your eligible childcare costs are no more than £175 per week if you have one child or £300 per week if you have two or more children.


More detailed information can be found on our resources page.
I am in a company pension scheme and my employer makes contributions, will this be affected? Joining the v-payplan may have a small effect on your employer’s contributions to your pension, however these will be outweighed by savings made through non payment of tax and national insurance.
What if I change employers? Simply negotiate with your new employer to continue being part paid in childcare vouchers. If they are not registered with Cheshire Childcare Vouchers, we can send them the relevant documentation.
Can both parents claim vouchers for the same child? Yes, as long as you are both employed and paying tax and national insurance
Do I have to use my vouchers the same month I receive them? No, they are valid for up to 12 months.





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