Working Tax Credit or Childcare Vouchers – which is best for me?
|
Situation |
In most cases best cost-effective option |
|
Employers offer Voucher Scheme |
Vouchers |
|
You receive less than £545 a year from Tax Credits |
Vouchers |
|
You receive more than £545 a year from Tax Credits but have a high income |
Vouchers, as in the majority of cases you will save more from claiming the tax and national insurance contribution exemptions with Childcare Vouchers |
|
You receive more than £545 a year from Tax Credits but are on a low income |
Childcare element of Working Tax Credit. |
|
If your childcare costs are more than £175 per week for 1 child or £300 per week for two or more children. |
In the majority of cases, you will benefit from taking Childcare Vouchers to pay for the amount that your childcare costs exceed those limits |
Everyone’s circumstances are different therefore please check your own situation carefully before deciding which help is most cost effective to you.
You should seek independent advice before making a decision to ensure that you are not losing out.
