ChildCare Voucher Issue - Salary Assessment Typical Issue

[sjgul]

I have a typical issue related to the ChildCare voucher issue when applying for my FLR.

My salary shown on pay slip is like this :-

Salary :- XXXX
Child Care Vouchers :- 243

Remaining Salary :- XXXX - 243 = YYYY

My issue is related to the points which I can claim for my earned income :- Since money claimed through child-care vouchers is non-taxable; In such a situation what salary / income for the past 8 months will be considered by HO be to be used for income assessment

"Salary including Child-Care-Vouchers"
Or "Salary - Child-Care-Vouchers" as Child-Care-vouchers are non-taxable.

[sjgul]

Can moderators help on this ?

[John]

My opinion, and that is all it is, is that the salary you can take into account would be YYYY .... simply because that is the amount of your salary!

[Chess]

Salary is actually XXXX
because - do you mean people should noyt declare say the 'tax free' allowance as earned income? how about pension?- because it is tax free????

Therefore include in your income the cost of Vouchers, Pension etc - but only employee contribution (and not employer contribution!)

[John]

Chess, I see the position thus. The person has taken a salary sacrifice ... their salary has been reduced and now, as well as the salary, they get childcare vouchers. Nevertheless their salary is less than it would have been ... it is now YYYY ... not XXXX.

Pension contribution? I would not take off any employee contributions, but neither would I add any employer's contributions.

[Chess]

Chess, I see the position thus. The person has taken a salary sacrifice ... their salary has been reduced and now, as well as the salary, they get childcare vouchers. Nevertheless their salary is less than it would have been ... it is now YYYY ... not XXXX.

Pension contribution? I would not take off any employee contributions, but neither would I add any employer's contributions.

Salary is XXXX. The Govt introduced this scheme to help with child care costs - it still earned income exempt from tax up to GBP 243 per month!

How about tye tax free allowance. Should this be removed from income as it is not taxed?

Pension contributions are tax free - so should these be removed!!?!

I am not a tax expert but to me this is quite obvious - as it is earned income!!!!!!!

Foreaxmple - should all UN employees say that they dont earn any money - as they are tax exempt?

[John]

Chess, we shall just have to agree to disagree on this matter.

Other opinions very welcome.

[sjgul]

Thanks John, Chess for your views on this.

Although I am getting the required points ir-respective of whether the salary is XXXX or YYYY , still I wanted to be sure as to how I will prepare my case and cover documents.

I think I am going to prepare 2 Excel Sheets :- One with salary XXXX and another with salary YYYY, both of them showing my 8 month assessment to be in the range gaining those required points.

I think it should be fine.

Regards.

[camcan]

Thanks John, Chess for your views on this.

Although I am getting the required points ir-respective of whether the salary is XXXX or YYYY , still I wanted to be sure as to how I will prepare my case and cover documents.

I think I am going to prepare 2 Excel Sheets :- One with salary XXXX and another with salary YYYY, both of them showing my 8 month assessment to be in the range gaining those required points.

I think it should be fine.

Regards.

Please let me know what did you end up doing finally... xxxx. or yyy.... as i asked the HO they said today XXXX.... is what one should claim for.... please let me know... i am in similar situation where i can get considring current rules same point regardless but is the right figure to put in the CO and the app. form.. you help would be much appreciated

[vinata]

My question is whether Tier 1 holders can actually claim childcare vouchers or not? Since £243 pcm is a tax free amount it could potentially constitute a participation in the benefits system. I have got a child myself and has never asked for those vouchers to be issued to me because i was affraid they could be treated as the receipts of benefits. Since all of us are immigrants, are we really entitled for this kind of government support? Or is getting tax free payments allowable for a Tier 1 migrant?

Your clarification would be much appreciated. If you can, please include any links where i can read more about it. Many thanks in advance for your replies.

[Master_Blaster]

This is not a benefit (like Job Seeker Allowance / Council Tax allowance etc). Even someone with "NO Recourse to Public funds" on their passports (Tier 1 holders for instance) can claim this as this does not come from Public funds.

The first £243 every month comes out of your gross (pre tax) salary, thereby saving you upto 40% (depending on the tax you pay).

My question is whether Tier 1 holders can actually claim childcare vouchers or not? Since £243 pcm is a tax free amount it could potentially constitute a participation in the benefits system. I have got a child myself and has never asked for those vouchers to be issued to me because i was affraid they could be treated as the receipts of benefits. Since all of us are immigrants, are we really entitled for this kind of government support? Or is getting tax free payments allowable for a Tier 1 migrant?

Your clarification would be much appreciated. If you can, please include any links where i can read more about it. Many thanks in advance for your replies.

[camcan]

My question is whether Tier 1 holders can actually claim childcare vouchers or not? Since £243 pcm is a tax free amount it could potentially constitute a participation in the benefits system. I have got a child myself and has never asked for those vouchers to be issued to me because i was affraid they could be treated as the receipts of benefits. Since all of us are immigrants, are we really entitled for this kind of government support? Or is getting tax free payments allowable for a Tier 1 migrant?

Your clarification would be much appreciated. If you can, please include any links where i can read more about it. Many thanks in advance for your replies.

I was under similar confusion and i re-serched on it for over a month... i have read all the possible websites... i.e HM revenue, Direct.gov etc.... No where does it say its public fund further more on home office site and forms there is a mention of public funds that are prohibited....if you look at the list there is tax credit / child benifit but not these vouchers... even still i wasn't satisfied.... i contact HR in T-Mobile and they confirmed that its applicable to immigrants with no recorse to public funds in writing....still i wasn't satisfied and contacted UKBA direct this is the response i got



Dear Sir/Madam,
Thank you for your enquiry.
Please be advised that your child is entitle to state education up to the age of 11 or until your leave to remain whichever is sooner.
Childcare voucher does not come the Public Funds and hence you are entitle to subscribe to the scheme with your employer.
Yours faithfully,


Amrit Haria
Immigration Group
UK Border Agency
If you intend to reply to this e-mail please ensure that you re-send all the information from your original enquiry.


Hope this helps you

Regards
Cam

[herts]

Hi Sigul,
If you could let me know about childcare voucher, I am also thinking of taking £243 off my salary, I earn around £20k, how much tax can I save in a year, and how much child tax credit I will get if I take £243.
Thanks
Herts

[Master_Blaster]

Herts,

Child Tax Credit is a benefit. Childcare vouchers are something different. Whether you can claim Child Tax credit depends on your Visa status.

Child care vouchers are usually offered by employers. They deduct a portion of your gross (pre-tax salary) (max £243 per month) which can be used to pay for child care (registered nurseries / school extra time clubs etc). The amount you save from your salary will usually go into an online account from where you can pay for the registered nursery.

The saving for you would be the tax you would have paid on the amount, that is used for childcare.

Contact your employer and they will usually be able to provide you further details.

Hi Sigul,
If you could let me know about childcare voucher, I am also thinking of taking £243 off my salary, I earn around £20k, how much tax can I save in a year, and how much child tax credit I will get if I take £243.
Thanks
Herts