How much can I exchange?
- Basic Rate taxpayers are entitled to exchange a maximum of £243 from their monthly salary (£55 per week) in exchange for childcare vouchers, regardless of the number of children they have.
- Higher Rate taxpayers who sign up for childcare vouchers after 5 April 2011 will only receive tax and National Insurance relief on up to £124 a month of childcare vouchers.
- Additional Rate taxpayers will only receive tax and National Insurance relief on up to £110 a month of childcare vouchers.
- Your agreed salary exchange must not take you below the National Minimum Wage (NMW). All other Salary Exchange Schemes will be taken into account as well (eg pension, cycle scheme). If you are unsure, please contact Payroll.
- Note: higher rate and additional rate taxpayers who signed up for vouchers before April 2011, remain with their current employer and do not take a break for longer than 12 months, will be able to continue to exchange a maximum of £243.
Table of Savings from April 2011
Basic Rate Taxpayer | Higher Rate Taxpayer | Additional Rate Taxpayer | |
Gross Earnings | Up to £37,500 | £37,501 to £150,000 | £150,001 or more |
Maximum voucher amount per month | £243 | £124 | £110 |
Annual Savings | £892 | £624 | £620 |