Effects on salary and benefits
Questions answered on this page:
What will my payslip show?
Will taking childcare vouchers affect my pension scheme contributions?
Will taking childcare vouchers affect my Statutory Maternity Pay / Statutory Paternity Pay?
Will taking childcare vouchers affect my Working Tax Credit?
Will taking childcare vouchers affect my Child Tax Credit?
Will my overtime payments be affected?
What will my payslip show?
Your vouchers may or may not appear on your payslip. Often your salary post-vouchers is shown and the voucher value is shown separately. The reduced tax and NI contributions are then shown on the opposite side of the payslip.
Will taking childcare vouchers affect my pension scheme contributions?
The impact on the state pension scheme (S2P or SERPS) is likely to be negligible. Most other pension providers are happy to accept childcare vouchers as notional pay. Ask your employer for confirmation of whether your pension contributions are affected.
Will taking childcare vouchers affect my Statutory Maternity Pay / Statutory Paternity Pay?
Statutory Maternity Pay is calculated on salary on which NI is payable so there may be a reduction in SMP when taking childcare vouchers which are NI exempt. For this reason, you may wish to consider coming off the scheme 23 weeks before your baby is due. There is no impact on Statutory Paternity Pay.
Will taking childcare vouchers affect my Working Tax Credit?
The childcare element of the Working Tax Credit may be affected by taking childcare vouchers. Sodexho Pass cannot comment on individual circumstances as every family’s situation is different and it is your decision. The HM Revenue & Customs have a Tax Credits helpline on 0845 300 3900 which you may wish to contact prior to applying for childcare vouchers. Alternatively there is an HMRC calculator at HM Revenue & Customs Website.
Will taking childcare vouchers affect my Child Tax Credit?
There may be an impact on Child Tax Credit. Sodexho Pass cannot comment on individual circumstances as every family’s situation is different and it is your decision. The HM Revenue & Customs have a Tax Credits helpline on 0845 300 3900 which you may wish to contact prior to applying for childcare vouchers.
Will my overtime payments be affected?
Most employers are happy to accept childcare vouchers as pay when calculating overtime so your payments should not be affected by taking childcare vouchers. Check with your employer.