Childcare vouchers and tax credits - better off calculator
If your employer offers you childcare vouchers to help with your childcare costs it may affect the amount of tax credits you can get. This online calculator can help you decide whether - overall - you would be better off taking the childcare vouchers or not.
On this page:
- Who can use this calculator?
- Information to get together before you start
- Your results
- More useful links
Who can use this calculator?
Step 1
Check if both of the following apply:
- you use registered or approved childcare
- your employer has offered you childcare vouchers, or has arranged childcare for you with a commercial childcare provider, such as a nursery
If both apply, go to step 2.
Step 2
If one of the following applies, you don't need to use the calculator - you will be better off accepting childcare vouchers:
- you have only one child and they don't normally live with you
- your employer offers you childcare vouchers without reducing your pay
If this doesn't apply to you, go to step 3.
Step 3
Don't use this calculator if you can answer 'yes' to any of the following:
- the total amount of the vouchers you've been offered (or the amount your employer pays directly to a childcare provider for you) - is over £55 a week or £243 a month
- you live or work in the UK but you have a child outside of the UK - unless they live with your Crown Servant partner posted overseas (if this applies, treat your child as living with you when you're asked)
- you are over 50 years old and are returning to work after being on benefits for at least 6 months
- you are on pension credit and work 16 hours or more a week
If any of these apply to you and you think you qualify for tax credits, you should make a claim. If you're already getting tax credits, and you accept the vouchers you should let the Tax Credit Office know how much your income and childcare costs have gone down by.
If none of these apply, you can use the calculator.
Go to the start of the childcare vouchers and tax credits better off calculator
Information to get together before you start
Your income
Get together details of all your income (and your partner's if you have one) for:
- the last tax year - which started on 6 April 2008 and ended on 5 April 2009
- the current tax year - which started 6 April 2009 and ends on 5 April 2010
Check how to work out your income for tax credits
Your childcare costs
Work out your average weekly childcare costs before you start the calculator. This may help to save you time when you're asked for the information.
If you need to know how to work out your average weekly childcare costs
Your vouchers or payments made directly by your employer
Get together details of the following:
- the weekly, monthly or yearly amount of the childcare vouchers or the payments your employer makes directly to a childcare provider for you
- the start date of the vouchers/employer payments
If your employer makes direct payments to a childcare provider, treat those payments as if they were vouchers when you use the calculator.
If you have a disability
The calculator will ask you if you have a disability, so it's worth checking what answer you should give before you start. This may help save you time when using the calculator. Follow the link below to get more information about disability.
If you don't work for 16 hours or more a week, but the other conditions apply to you, you should still answer 'yes' when the calculator asks if you are disabled.
You have a disability - can you get extra tax credits?
Your results
The results are only a guide to whether you would be better off taking childcare vouchers. Your tax credits entitlement is worked out when you actually make a claim, or report a change of circumstances.
You may want to print off the results.
More useful links
What is registered and approved childcare for tax credits?
You have children - can you get tax credits for them?
Your family doesn't live in the UK - can you get tax credits?
