HMRC better off calculator is a government guide on claiming child care vouchers. It helps you calculate how the employer voucher scheme might affect your tax credits.
HMRC CHILDCARE CALCULATOR: The online tool will help determine if claiming tax credits is best for you.
But, in some cases, you could be better off taking the vouchers from your employer instead.
Parents should use the childcare vouchers better off calculator as a general guide only.
Your actual entitlement for tax credits will get calculated more accurately. This will happen when you report a change in circumstances or make a claim.
Have the following information prepared before you start because you will need:
Note: There are some special rules for using the child care voucher calculator. Treat direct payments paid by your employer to a childcare provider as if they were vouchers. You can use the online Childcare Indicator Calculator on HM Revenue and Customs website.
As a general rule, many parents will save more money by accepting childcare vouchers. There would be no need to use the childcare voucher calculator if:
Paying higher or additional rate tax means you cannot use HMRC childcare calculator.
The childcare voucher calculator eligibility rules also apply to anyone who:
The HMRC childcare calculator may find that you would be better off claiming tax credits. The next step is to contact the Tax Credit Office if you do not claim already.
They can also assist if you are already claiming tax credits but not getting enough help with your childcare costs.
The child care voucher calculator might show you would be better off taking vouchers. Even so, you should inform your employer because you might still have entitlement to get some tax credits payments.
Do not include the childcare vouchers as income when you claim tax credits. Also, do not include the amount covered by the vouchers when you calculate the cost of childcare.
Talking the vouchers could mean your childcare payments get reduced by £10 a week or more. In this case you must inform the Tax Credit Office about this within one month.
Childcare Vouchers Eligibility: HMRC Better Off Calculator in the United Kingdom