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t: 0845 607 6126 e: info@childcareaccount.co.uk |
| Benefits |  |
Participating in the Childcare Account scheme offers great savings.
Based on the following assumptions
- Annual childcare costs £4500 per year (£375 per month)
- Not contracted out of state second pension scheme
- Tax and NI savings on £55 week (£243 per month)
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Basic Rate Tax Payer (Annual Earnings £20,000) |
Higher Rate Tax Payer (Annual Earnings £40,000) |
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Tax Saving (£243 x 22%) = £53.46 month |
Tax Saving (£243 x 40%) = £97.20 month |
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NI Saving (£243 x 11%) = £26.73 month |
NI Saving (£243 x 1%) = £2.43 month |
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Total Saving £80.19 month |
Total Saving £99.63 month |
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Worth nearly 11 weeks free childcare per year |
Worth nearly 14 weeks free childcare per year |
- Both parents are eligible to join a childcare voucher scheme so you could double your savings.
- Child tax credits and child benefits can also potentially be paid in to your Childcare Account to go towards the cost of your childcare.
- As a parent you can salary sacrifice the whole amount of your childcare costs but only the first £55 per week (£243 per month) is tax and NI exempt (and your final salary must not put you below the National Minimum Wage).