Are you a winner or a loser in the recent budget?

Enjoy Benefits and the new benefits
March 14, 2012
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March 30, 2012

Are you a winner or a loser in the recent budget?

George Osborne has increased the personal allowance but reduced the threshold at which people pay 40% tax, child benefit is being removed for certain households and this will have a significant impact on many working parents. How did you fare in the budget?

George Osborne has increased the personal allowance but reduced the threshold at which people pay 40% tax, child benefit is being removed for certain households and this will have a significant impact on many working parents.

How did you fare in the budget?

One thing that remains in place, unchanged is the childcare voucher allowance. If you are a basic rate tax payer, you can take £2916 of your gross salary in the form of childcare vouchers and save £933.12 in tax and national insurance payments. And BOTH working parents can do this, if their employer offers this benefit! That’s a saving of £1866.24 per year.

As a 40% tax payer, you can take £1488 a year of your gross salary in the form of childcare vouchers and save £623.

With the average cost of nursery fees in the UK being £900 per month this is a benefit definitely worth having.

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