NIM02490 - Class 1: Vouchers - non-cash vouchers – qualifying childcare vouchers from 6th April 2005 – how to calculate the exempt amount – example 1 – employee with regular monthly payment of vouchers in 2005/06 tax year – calculation based on the legislation - summary

NIM02478 – NIM02489 show how to calculate the amount to be disregarded in calculating the amount of earnings comprised in a qualifying childcare voucher (see NIM02448). The following table summarises the position for the whole tax year.

(a)

Tax month

(b)

Chargeable expense (£)

(c)

Exempt amount (£)*

(d)

Amount disregarded (£)(lesser of columns (b) and (c))

(e)

Amount included in earnings (£) (column (b) minus column (d))
1217217217NIL
2217217217NIL
3217217217NIL
4217217217NIL
5217217217NIL
62172152152
721720020017
8217250217NIL
921720020017
10217250217NIL
1121720020017
1221720020017
Total amount for months 1 to 122,534 

* Note The total amount in tax months 1 – 6 (6th April 2005 to 5th October 2005) must not exceed £1,300.

For:

  • details of how to calculate the exempt amount using the simplified calculation where there is a regular monthly payment of vouchers, see NIM02491
  • examples showing the calculation of the exempt amount for vouchers provided:
  • in two lumps sums in tax months 6 and 12 of the 2005/06 tax year, see NIM02495 and NIM02496 respectively
  • in one lump payment in tax month 1 of the 2005/06 tax year, see NIM02497.

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