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.