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 21 qualifying weeks as a result of the vouchers they received
in months 1 - 5. So the value of QW is 5.
So the exempt amount is £50 x 5 = £250.
But the total of the exempted amounts in the period 6th April
2005 to 5th October 2005 must not exceed £1,300. Employee Z
has already had £1085 disregarded in the calculation of their
earnings in months 1 - 5. Which means that:
For details of how to calculate the exempt amount for:
