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Budget Update
Friday 14 March 2008 There was no increase in the Budget announced on Wednesday 12 March 2008, on the maximum amount which parents can take as childcare vouchers. This means the maximum amount of tax and NI exempt Childcare Vouchers remains at £55 per week or £243 per month, per employee.
No increase in the maximum amount working parents can take as childcare vouchers and a reduction in tax rate will mean slightly reduced savings for basic rate tax payers.
With no increase in voucher amount to offset against, the abolition of the 10% earned income tax rate and the reduction in basic rate tax from 22% to 20%, will result in reduced childcare voucher savings for basic rate tax payers, of up to just under £904 per year, reduced from £962 in the current year. Higher tax payers remain largely unaffected. There is no change to the amount higher rate taxpayers can save.
Increases in Child Benefit and Tax Credits were announced in the Budget. Details of these increases may be obtained from HMRC. << Go BACK
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