Maybe both our companies add in the income levels as we both were only offer £124 of the £248 allowance and were both to.d it was due to us being in higher income bracket.

The amount you get on CCV is based on your income levels. Both me and my husband on got 50% of the full allowance.

yes with childcare vouchers your husband saves money on tax and so does his employer.
everything you get in childcare vouchers is tax free.
so the £243 would have been £165.44 after your husband paid taxes if not claiming childcare vouchers.
they are a great thing!!

Hi, I think the £243 is taken out of your husband's salary before tax, so it is what he would otherwise have paid in tax on that amount. So the government are not exactly paying money to you, but they are saying you no longer need to pay the £78 in tax, it will go towards the childcare vouchers instead. Hope that makes sense?!

Hello All,

I'm sorry to ask such a dumb question re childcare vouchers but how do they work? Our providers have been more than unhelpful and my husband won't let me ring his office to find out!

We appear to get £243 into our voucher's account every month, but £165.44 is deducted from my husband's pay salary. Does this mean the remainder (£78) is the savings in tax and NI that the government gives us towards the vouchers? Therefore we save £78 x 12 (months) = £936 per annum?

What I really want to understand is if the £78 saving is given to us by the government ie we buy £165 pounds worth but the government put in £78 to top it up to £243 - is that how it works?

Thanks in advance for any help.