How much do the savings add up to?
If you are a basic rate taxpayer you can save tax and NI totalling up to 904 per year and if you are a higher rate taxpayer then you can save up to 1,195 per year. The savings you’ll make are based on your earnings and not on how many children you have. If you receive any tax credits, childcare vouchers may not save you any money. Check out our Tax Credits Information page for more information. • For employees who elect to receive the maximum amount of vouchers and who earn below £42,035 per year, may save tax at 20% and NI at 11% (contracted in) the per annum saving will be £904. • For employees who elect to receive the maximum amount of vouchers and who earn below £42,035 per year, may save tax at 20% and NI at 9.4% (contracted out) the per annum saving will be £857. • For employees who elect to receive the maximum amount of vouchers and who earn above £42,035 per year, may save tax and NI depending on actual earning the per annum saving will be up to £1,195.
