Stopping Childcare Vouchers Question & a Payrise

[Dodgy_Keeper]

Hi all,

Bit of a long winded one I'm afraid, but it's all in the spirit of being fully prepared for the upcoming Annual review next month!

So.......

When I started my IVA I had a childcare allowance in my I&E, & I paid for childcare vouchers. Two kids, one was before and after school care, one was full time nursery (which was paid for by vouchers).

In September, little one left nursery to start school. Therefore I stopped the vouchers (bar £1 a month) and started paying by cash to the new minder (who has the eldest!). It's the same amount a month as it was before. So I can't see that being a problem. (I hope)!

So when I stopped the vouchers, my monthly salary went up (as I wasn't paying for vouchers), but the outgoings in the I&E went up as I was paying cash for both kids.

Now in a month I'm getting a promotion at work, and will be getting a 10% payrise. Will this be compared against my monthly salary that had the vouchers, or the monthly salary that did not have the vouchers?

It's all quite confusing!

[MelanieGiles]

Sorry that no-one has got back to you so far on this post.

It doesn't really matter whether your net salary (ie after taking off the vouchers) or a grossed up salaru with the childcare payments then showing in the expenditure section - as the net effect should be the same - as it will be now with your amended figures.

I always gross things like this up for my own clients, as it gives a higher earning threshold when applying the 10% uplift provision.

[luluj]

Hope Mel's answer has reassured you and congratulations on your promotion and new job.

[Michael Peoples]

Congratulations from me too and this seems relatively straightforward. The payrise will be addressed at the annual review although cost of living increases could seriously erode any increase in surplus income. It would not come under the 10% 50/50 rule but your new net salary should mean higher overtime for you going forward.