To find out the impact of Childcare Vouchers and tax credits, please refer to the HMRC's calculator below:
Childcare vouchers and tax credits - better off calculator
The table below will give an indication of the annual savings available if you take the maximum amount of tax and NI exempt Childcare Vouchers:
|Basic rate (contracted out) 20% tax 10.6% NI
|Basic rate (contracted in) 20% tax 12% NI
|Higher rate category 40% tax 2% NI
If you are found to fall into the higher rate category (as a rough guide this is likely to be those earning between £44,781 and £151,484) you will be able to get £124 a month tax and NI exempt (£28 a week).