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 vouchers are not provided during the period 6th April
2005 to 5th October 2005, the modified rule for calculating the
exempt amount does not apply (see
NIM02472). So employer A must use the
general rule for calculating the exempt amount (see
NIM02471).
QW(a) = 38 (the number of qualifying weeks for which Z has
been employed by employer A at the time the voucher is provided).
As employee Z has already had qualifying childcare vouchers for 34
qualifying weeks (ie, those provided in months 1 to 8), the value
of QW is 4.
So the exempt amount is £50 x 4 = £200
As the chargeable expense - £217 – exceeds the
exempt amount, only that latter amount may be disregarded. So:
For details of how to calculate the exempt amount:
