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[Solved] Childcare vouchers

 
(@astewart)
Active Member Registered

Hi, I was just wondering if anybody has had any experience with the childcare vouchers scheme and csa calculations. I have just been informed that the csa now calculate my payments by working out my salary from April to April. From February 2017 I will start paying for childcare vouchers straight from my wage before tax. My question is, next year, when they work out my payments, will they count my wages before the money for the vouchers come out or after? For example if my earnings are 20,000 but 3000 gets taken out before I get it for vouchers, would that mean the take my gross annual income as 17,000 or would it still be 20,000? Any info would be greatly appreciated.

Quote
Topic starter Posted : 09/12/2016 4:53 am
(@TashasHideousLaugh)
Reputable Member Registered

hi

The CMS (not CSA) work on a "gross income" basis - and they get these figures from HMRC direct.

It is unclear where the child care vouchers get deducted - but if they are part of a "salary sacrifice" scheme - then this is given to you in lieu of salary - and comes off "gross income". Therefore the figure HMRC will get is adjusted down (accordingly).

But there are a number of different "versions" and you should check if your vouchers are "salary sacrifice" and come of "gross income".

Also bear in mind that CMS work with the data for the most recent tax year - meaning there is likely to be a lag before CMS obtain figures from HMRC adjusted/reduced for vouchers.

Hope helps

ReplyQuote
Posted : 09/12/2016 6:10 am
(@astewart)
Active Member Registered

It did, thank you very much

ReplyQuote
Topic starter Posted : 09/12/2016 2:59 pm
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