The calculation of the chargeable expense is as month 1 ie,
£217 (
NIM02478).
The exempt amount is calculated using the formula E x QW
where:
E = £50
QW is the number of qualifying weeks:
(a) for which the employee has been employed by the secondary contributor during the tax year in which in which the qualifying childcare voucher is provided; and
(b) for which no other qualifying childcare voucher has been provided by the secondary contributor.
As the qualifying childcare voucher is provided during the
period 6th April 2005 to 5th October 2005, then the figure in (a)
of QW above is taken as 26 (see
NIM02472).
But employee Z has already had qualifying childcare vouchers
for 3 qualifying weeks as a result of the vouchers they received in
month 1. So the value of QW is 23.
So the exempt amount is £50 x 23 = £1,150.
But the total amount that may be exempted in the period 6th
April 2005 to 5th October 2005 is limited to £1,300. The
amount exempted in month 1 was £217. As:
the full amount of the chargeable expense of £217 is
disregarded in calculating the amount of employee Z’s
earnings for May.
For details of how to calculate the exempt amount:
