Money Matters

Parenting – Money Matters

Government Benefits

The Child Tax Credit is a system of income-related support for families with children, and is available for families with incomes under a certain level. This is in recognition of the costs of parenthood borne by both low and middle income families. The Child Tax Credit will be paid to the main carer, and can be spent on the child/ren in any way that the carer chooses.

The Working Tax Credit is a system of providing a targeted top-up to wages for those in lower-paid jobs (both with and without children), ensuring that work pays more than welfare. The Working Tax Credit will include a specific childcare element, which will pay a percentage of childcare costs for those with children in receipt of this credit.

You may be entitled to Child Benefit, you can get more infomation from the link bellow.

To see more information, or to apply online, visit:
www.inlandrevenue.gov.uk/taxcredits
www.Money2Mummy.co.uk
www.hmrc.gov.uk/childbenefit

 

Childcare Vouchers

Childcare voucher can help you with the cost of childcare.

How does it work?

Your employer will usually run a scheme by linking up with the childcare voucher company by paying an administration fee for their service. The voucher operator will either supply you directly with your childcare vouchers or will provide your employer with them who will distribute them to staff. Employees receiving childcare vouchers can then use them to pay for registered childcare i.e our nursery. The nursery will then redeem the value of the voucher into its bank account.

How do vouchers save me money?

Vouchers normally come in the form of a salary sacrifice. You sacrifice a certain amount of your salary and instead receive that amount in childcare vouchers. So you pay tax and national insurance on your reduced salary. You can receive an unlimited amount of your salary in vouchers, as long as your cash pay does not fall bellow the minimum wage, but only the first £55 a week or £243 a month (Jan 09 Figure) is free from Tax and N.I.