Childcare vouchers and tax

[inkey$]

Anybody know about childcare vouchers and how it relates to tax?

I have to do a self assessment for each year and my employers offer childcare vouchers. For me as a higher rate tax payer, the work rules say I can claim £124 a month tax free, but I'm worried I'll end up paying it all back each year when I do my assessment, in which case it's pointless right?

Any advice gratefully received.

 

[Z4Bob]

The money is deducted from your pay, before tax and NI are applied, and paid to the childcare voucher provider. At the end of the year your P60 will show taxable pay only, i.e. Pay you received after childcare voucher deductions. It really is a tax saver. Millions can't be wrong. I used to work for one of the companies and the vouchers really are worth taking up.

 

[inkey$]

The money is deducted from your pay, before tax and NI are applied, and paid to the childcare voucher provider. At the end of the year your P60 will show taxable pay only, i.e. Pay you received after childcare voucher deductions. It really is a tax saver. Millions can't be wrong. I used to work for one of the companies and the vouchers really are worth taking up.

thanks for the feedback.